In October 2024, Elliott Hill succeeded as Nike’s chief executive after nearly three decades at the company, tasking him with strengthening partner relationships and revitalizing the brand. Under his leadership, Nike maintained its top position in Piper Sandler’s teen survey for clothing and footwear, extending its lead over the nearest competitor by a wide margin. This sustained brand resonance among younger consumers has underpinned early signs of recovery in same-store sales and supported a modest uptick in wholesale orders across North America.

During the second quarter of fiscal 2026, Nike’s gross margin contracted by 300 basis points, reflecting a four-point slide from recent peaks driven largely by tariff headwinds and elevated input costs. To counteract these pressures, management has implemented targeted price increases and accelerated supply-chain shifts to lower-cost regions. While these measures aim to restore margin trajectory, the pace of pass-through pricing—particularly in international markets where competition is intensifying—remains a key risk.

Nike reported 1% year-over-year revenue growth in Q2, with net income declining by over 30%. Wholesale revenue grew by 8%, buoyed by solid performance in North America, where sales rose 9%, but was offset by an 8% drop in direct-to-consumer revenue and double-digit declines in Greater China. Footwear, which accounts for approximately 60% of revenue, was essentially flat, while apparel growth decelerated to 4%. Management’s ‘Win Now, Win Later’ plan hinges on accelerating footwear innovation and restoring momentum in direct channels to drive a more sustainable recovery.