Following today’s release of Nike’s figures for the 13 weeks ending 31 August 2025; Louise Deglise-Favre, lead apparel analyst at GlobalData, a leading data and analytics company, offers her view: “Nike’s reported better-than-expected results in Q1 FY2025/26, with revenue rising 1.1% to $11.7bn, showing the potential start of its turnaround following a string of declining quarters. This return to timid growth can partially be attributed to efforts Nike has made to improve its offering, focusing more on key areas, such as running, to better compete with rivals. Despite this improvement, Nike’s results continue to be dragged down by Converse’s poor performance, with sales falling 26.9% due to its outdated designs and lack of impactful marketing. Nike’s encouraging sales results also need to be mitigated by the brand’s earnings before interest and taxes which fell 29.4%, due to lower selling prices in North America and the impact of tariffs on operational costs in the US.
“The Nike brand experienced growth in North America and EMEA, with constant currency revenue rising 4% and 1% respectively in Q1, as shifts in Nike’s offering began to resonate with consumers. Asia Pacific and Latin America also grew 1%, driven by its emerging markets where rising income levels allow consumers to spend more on sportswear. Greater China remained the shadow in Nike’s sky, with constant currency sales falling 10%, as consumers continued to spend cautiously following last year’s economic slowdown and as they favoured local brands such as ANTA and Li-Ning, especially in the context of trade wars between China and the US.
“While Nike made efforts to pivot its footwear offering towards more current designs, especially within the performance and running department, its footwear division remained the most challenging, with reported revenue falling 0.7%. However, this is a much-improved performance on Q4 FY2024/25, when footwear sales fell 12.8%, showing very encouraging signs towards a future turnaround. Apparel fared much better, rising 9.3%, as consumers continued to appreciate its designs and performance features. The apparel division is also expected to do well next quarter following the launch of the much-anticipated NikeSKIMS line in collaboration with Kim Kardashian which will allow Nike to fully tap into the athleisure aesthetic which has been immensely popular among female shoppers. Nike’s direct-to-consumer (DTC) channels experienced the most problems, with constant currency revenue falling 5%, dragged down by its online platform, where sales fell 12%, while its store sales rose 1%. In contrast, wholesale sales rose 5%, indicating a more positive outlook from its key retail partners, many of which saw their share price rise following these encouraging Nike results.”
