Following today’s release of Nike’s figures for the three months and year ending 31 May 2026; Elliot Rickerby, apparel analyst at GlobalData, a leading intelligence and productivity platform, offers his view: “Although Nike slightly improved upon its Q4 2025/26 guidance with revenue falling 1.1% to $11.0bn, both the quarter and its full year results were disappointing, particularly considering its weak prior-year baseline and failure to signal a recovery. Nike’s ongoing struggles stem from intense sportswear competition and weak consumer confidence caused by macroeconomic volatility surrounding the conflict in Iran. The past year has seen intensifying competition from smaller, resilient players like Hoka and ASICS, alongside a surging Adidas which has comfortably outperformed Nike each quarter. Aiming to counter these pressures, Nike is pivoting back to its heritage through its Sport Offense framework, which aims to re-establish the company as a performance-first sports brand, streamlining its inventory away from a lifestyle offering. While this strategic pivot is undoubtedly a bold move, any positive impact will likely take significant time to materialize.
“North America continues to be the only region showing signs of a turnaround, reporting its fourth consecutive quarterly growth with revenue rising 3% to $4.8bn on a constant currency basis. Year end results for North America marked a significant improvement from FY2024/25 jumping 4.8% compared to a decline of 9% last year, with further growth expected due to a boost from the World Cup. Conversely, Greater China recorded its sixth consecutive quarterly decline of 12.1% to $1.3bn, resulting in a 13% decline for the year end on a constant currency basis. Nike continues to be beaten by local, culturally attuned brands in the Chinese market such as Xtep and ANTA who are capitalising on Asian consumers’ preference for regional retailers. EMEA Q4 sales also declined marginally, down 0.8%, as Adidas cemented its dominance in its home region, propelled by fashion- credible collaborations with AVAVAV and Willy Chavarria. Constant currency adjustments meant sales fell 6%, which is more revealing of Nike’s struggles in the region. Asia Pacific and Latin America revenue increased by 1.3%, performance which held steady because of the region’s growing economic prowess and expanding middle class, who have more disposable income to spend on sportswear.
“Driven by intense competition within the running and athleisure segments, Nike’s footwear division continues to underperform despite positive signs in the previous quarter. The segment closed FY2025/26 flat, capped by a 1.1% revenue decline to $7.1 billion in Q4. Currently squeezed between fashion-forward alternatives and specialized running brands, Nike faces growing pressure to clarify its market positioning, a strategic challenge which is being addressed through its ongoing Sport Offense pivot. Apparel performance remained marginally positive, with Q4 constant currency revenue up 1.5% and full-year revenue rising 4% to $13.4 billion. However, these results still do not show the significant boost that the brand will have been hoping for from the NikeSKIMS launch earlier in the year. Direct-to-consumer revenue fell another 8% on a constant currency basis, marking a second straight year of heavy losses following last year’s 12% drop. Wholesale performance was more robust, posting a 4% full-year increase and indicating that Nike’s strategic U-turn back toward wholesale channels is yielding positive results.”
