Can Nike Get Its Groove Back? Inside Its CEO’s High-Stakes Comeback Plan

Company Turnaround Strategy - Nike's new CEO, Elliot Hill, aims to revitalize the company by refocusing on sports and athletes [2][9][10] - The strategy involves reorganizing brands by sport (Nike Running, Nike Basketball, etc) with small, cross-functional teams [12] - A key component is leveraging the Sports Research Lab to develop innovative products based on athlete data [10] - Addressing excess inventory is a priority to make room for new products and inspire consumers [19][20] Challenges and Competition - Nike faces increased competition from brands like On Running and Hoka due to perceived lack of innovation and previous pullback from wholesale retailers [7][8] - The company experienced its worst trading day, wiping out $28 billion in market capitalization [1] - Nike is working to regain shelf space in the wholesale business [8] Financial Performance and Market Dynamics - Nike aims to return to mid-to-high single-digit revenue growth and teen margins [5] - In the first quarter of 2026, Nike's China sales fell more than 9% to $15 billion [25] - The company faces a $15 billion tariff bill but is working to offset it through various levers [23][24] China Market - Nike sees China's 14 billion consumers as a long-term opportunity, focusing on sports like running, fitness, and basketball [26] - Nike is reevaluating its monobrand store concepts in China (5000 stores), shifting from sportswear to a more sport-focused approach [27]