Can Nike’s new CEO revive sales?

As Nike faces scrutiny over declining sales in key categories like Air Force 1s, the brand’s future direction under CEO Elliott Hill remains uncertain. Photo by Jeff Tumale on Unsplash.

Can someone with 32 years at a company bring the bold, disruptive change needed to turn it around? Nike’s Elliott Hill is that man; he spent that amount of time at Nike before retiring — only to return as CEO on October 14, 2024. While his deep experience provides stability, it may also lead to an overreliance on past strategies, resistance to fresh ideas, and hesitation in making the tough decisions required to reinvigorate the brand. With sales declining and competition intensifying, Hill must prove he can break from tradition and take decisive action to restore Nike’s momentum.

Nike’s fiscal 2025 third-quarter results have raised concerns about the company’s direction under Hill. He succeeded John Donahoe, who stepped down amid falling sales and stock performance. In its fiscal 2025 Q3 report Nike reported a 9% year-over-year revenue decline, totalling $11.3 billion. Footwear sales dropped across all regions during the quarter: North America (-9%), Europe, the Middle East, and Africa (-11%), Greater China (-17%), and Asia Pacific and Latin America (-12%).

Analysts suggest Nike’s struggles extend beyond market fluctuations, citing deeper issues in product strategy and brand positioning. Some have criticized Nike for concentrating its marketing efforts on a small category — women’s apparel — which some analysts estimate accounts for just 3% of overall revenue.

To strengthen its women’s apparel segment, Nike announced NikeSKIMS, a new line featuring apparel, footwear, and accessories. Based on the announcement, women’s apparel appears to be the primary focus. While this initiative may boost sales in that category, footwear remains the major revenue driver, accounting for about 68% of Nike’s total revenue in fiscal 2024.

Perhaps larger initiatives, such as new sneaker releases and efforts to revitalize key footwear franchises, are on the horizon. However, if NikeSKIMS is the Nike’s biggest move to drive sales, it may not be enough to significantly boost overall sales in the coming quarter.

Some analysts argue that Nike should focus more on its core footwear franchises, such as Jordans and Air Force 1s, which have historically been strong revenue drivers but are now facing declining sales. Footwear accounts for approximately 68% of Nike’s total revenue, making it the dominant category, which Nike should arguably prioritize for expansion. Additionally, Nike is still recovering from its shift to a direct-to-consumer strategy under Donahoe, which aimed to boost margins by cutting wholesale partnerships. This move strained retail relationships, led to heavy discounting, and eroded the brand’s premium status. Hill is now working to rebuild wholesale ties and restore full-price positioning.

Despite these challenges, Hill’s leadership should be assessed within the context of his short tenure. While critics worry that his deep ties to Nike may limit innovation, others argue that his experience provides stability during a critical reset period. The key question is whether he can break from tradition and make bold decisions to restore Nike’s dominance.?

With competitors gaining ground, investors are eager for faster, more decisive action. While scepticism about Hill’s leadership is understandable, it may be too early to judge his effectiveness. The true impact of his strategy will only become clear in the coming quarters.