Following yesterday’s release of Nike’s figures for the three months ending 28 February 2025; Louise Deglise-Favre, senior apparel analyst at GlobalData, offers her view: “Nike’s sales in Q3 FY2024/25 fell 9.3% on the previous year to $11.3bn, slightly worsening compared to the previous quarter when sales declined 7.7%. While the tense global macroeconomic context is partially to blame for these disappointing results, Nike remained hindered by the lack of desirability of its footwear ranges due in part to the absence of innovation and dull fashion credentials, leading shoppers to favour competitors. These latest results translated into Nike’s nine month year-to-date sales falling 9.1%, with GlobalData forecasting that its 2024 global sportswear market share fell 1.1ppts on the year to 14.1%. The brand has also warned of a double-digit drop in sales to come in Q4 as it expects its turnaround to take longer than expected, due in part to new tariffs and low consumer confidence, as well as deep discounting that will be needed to clear old inventory and make space for new innovative products.
“Sales in North America fell 4% on a constant currency basis in Q3, outperforming the brand’s total sales, thanks in part to the relative resilience of the American economy improving consumer confidence and demand. Nike’s Asia Pacific and Latin America region also outperformed with sales only declining 4%, thanks to its many emerging markets experiencing both demographic and economic growth. In contrast, Greater China remained the brand’s worst performing region, with sales declining 15%, as lasting economic issues such as the property crisis brought consumer demand to a halt. Sales in EMEA declined 6%, improving from Q1’s decline of 10%, hinting at a slight improvement in consumer confidence amid the gradual softening of inflation.
“Nike’s footwear offering remained its Achilles heel, with Q3 sales dropping 11.7%, as the brand has lost its edge both in the performance and lifestyle footwear segments. Indeed, the lack of innovation in its performance ranges left Nike trailing behind competitors such as On and Hoka, while it has been slow to adapt its lifestyle ranges to align with current trends, making it unable to compete with the tremendous success of Adidas’ Originals models. The brand’s clothing division performed better, with a softer decline of 2.9%, thanks to its performance ranges still holding authority within the sportswear market. Its upcoming collaborative womenswear brand with SKIMS, named NikeSKIMS, set to launch in the US in Spring, will be Nike’s late but impactful arrival into the successful lifestyle athleisure market driven by brands such as Lululemon and Alo Yoga, which should further boost its clothing sales and improve its relevance. Converse’s sales continued to dwindle, falling 18.2%, as the brand continues to lose its relevance due to outdated designs.
“Nike’s direct-to-consumer (DTC) constant currency sales fell 10%, primarily due to a 15% drop in digital sales, while Nike-owned store sales only declined 2%, thanks to the brand’s roll out of new, experiential store concepts, helping to boost footfall and engagement. The brand’s wholesale business declined 4% in constant currency, performing comparatively better than DTC, as Nike continues to focus on strengthening its relationships with key retail partners.”
