The sports giant Nike (耐克): Is the old warrior still fit for the fight?

A shrinking empire

Nike (耐克) was once the undisputed icon of sport and street culture. Today it is visibly losing ground. After peaking with roughly $51.2 billion in revenue in fiscal 2023, the company saw sales stall in 2024 and then drop about 10% to $46.3 billion in fiscal 2025. In the 2026 fiscal second quarter (ending November 2025) global revenue eked out only a 1% rise while Greater China plunged 17%. Market sentiment has followed: Nike’s share price, which topped $170 in November 2021, has spent much of 2026 trading in the $65–$75 range — roughly half its peak.

Strategy missteps and channel pain

Nike’s shift to a direct-to-consumer (DTC) model from 2019 onward — exiting Amazon and shrinking wholesale — initially boosted margins and digital growth. But that honeymoon faded. It has been reported that rising logistics, warehousing and digital-advertising costs, plus inventory risk, forced Nike back into partnerships with retailers and a 2025 return to Amazon. The company says a new round of tariffs combined with higher raw-material and labor costs will add about $1.5 billion annually and shave roughly three percentage points off gross margin. Management’s bet that consumers would migrate from mall shelves to the Nike app did not fully pay off; empty Nike shelves became free real estate for rivals.

Competitors slice the turf

Who is taking Nike’s customers? Specialized running brands such as On (昂跑) and Hoka captured running enthusiasts with distinct midsole technologies and performance credibility, while New Balance, Salomon and emerging local firms have eaten into lifestyle and outdoor categories. Domestic champions Anta (安踏) and Li‑Ning (李宁) have also matured — combining locally tuned product development, competitive pricing and culturally resonant marketing — and partly reclaimed the premium conversation in China. Reportedly, Nike’s China market share slid from 18.1% in 2021 to 16.2% in 2024, while Anta climbed from 9.8% to 10.5% over the same period. Shoe sales in China have fallen as much as 21%, with e‑commerce down about 36% in recent quarters.

Can the swoosh fight back?

Nike’s problems are not solely competitive; they’re structural. A heavy reliance on heritage styles and resaleable classics has starved longer‑term R&D in running and technical categories just as global running and wellness trends surged. Add macro headwinds — tariffs and rising production costs tied to geopolitics — and the margin pressure becomes acute. Can Nike reboot product innovation, repair retail relationships and defend its premium status without sacrificing margin? The answer will determine whether the once-invincible swoosh still has the sprint in it, or whether the next decade belongs to a more diversified pack.