Despite owning most of the market share against its competitors, sneakerheads clamoring over retro Jordan releases, and building subbrands with today’s biggest stars in top professional sports, Nike is still on the decline.
As Q1 wraps up in the business world, the sports juggernaut is taking a dip of 9% year over year, which adds up to $11.3 billion, according to Nike’s 2025 fiscal third quarter results. It was broken down by Nike’s direct revenue, which was down 12% to $4.7 billion, while wholesale revenue hit a $6.2 billion low, down 7%. All those stats make the drop Nike’s most significant revenue decline in about five years since it suffered a 38% amid the COVID pandemic.
Nike CEO Elliott Hill acknowledges that while the graphs are dipping, the company is proud of its achievements in categories that may not directly affect its immediate bottom line.
“The progress we made against the ‘Win Now’ strategic priorities we committed to 90 days ago reinforces my confidence that we are on the right path,” said Elliott Hill. “What’s encouraging is NIKE made an impact this quarter leading with sport – through athlete storytelling, performance products and big sport moments.”
Nike CFO Matthew echoed those sentiments, championing the company’s continued push to serve its athletic base with new technology. The goal remains the same.
“The operating environment is dynamic, but what matters most for NIKE is serving athletes with new product innovation and re-igniting brand momentum through sport,” he said.
Talks of a recession —which have recently been strengthened even by Trump officials— coupled with crippling inflation could be to blame for Americans not having as much expendable income to drop on goods like Nike, which are largely nonessentials.
According to Reuters, Sensor Tower says that Nike’s mobile app (yes, that includes SNKRS) downloads are down 35% from last year. Raymond James notes that foot traffic at its brick-and-mortar locations is also down 11%.
Part of Nike’s bumpy start to 2025 could be attributed to Hill taking over as the new CEO in September after initially retiring with 30 years of experience at Nike in 2020 when he was President of Consumer and Marketplace.
