Nike ramps up marketing spend as revenue falls 4%

A pivot back to sport

Nike has been working to turn its business around since 2024, when Hill returned to the company. He took over the brand after a period of heavy discounting and a focus on direct-to-consumer sales that had weakened the company's position.

Under its Sports Offense strategy, Nike is betting on reaching consumers through sporting events, including the 2026 FIFA World Cup. According to Hill, the strategy "is really working".

"Since my return, I am firmly convinced that we have strengthened the foundation of the business. Our direction is crystal clear: we are building Nike the right way and for the long term," he told investors.

"I would characterise our comeback as an ongoing process. At our scale, meaningful change takes time," the executive added.

Hill cited growth in the performance business segment — which includes football, running, training, basketball, tennis and golf — as proof the strategy is working, with sales in this area up by high single digits.

"We felt it was critical to anchor the company in sport. We reignited our marketing efforts. We began serving consumers across the entire marketplace, rebuilding wholesale partnerships," he noted.

Financial results and restructuring

Nike's quarterly net profit fell 2% to $712m ($539m). Pressure remained strongest in China, where sales dropped 22%.

The Pace programme will focus on four areas: accelerating the modernisation of the supply chain, moving to a three-region structure instead of four, establishing a campus in China, and changing approaches to work organisation and staffing.

From 2028, the company will operate in three regions: the Americas (North and Latin America), APGC (Asia-Pacific and Greater China) and EMEA (Europe, the Middle East and Africa).

According to Hill, the reorganisation will bring "more decision-making, accountability and resources closer to the markets" the company serves.