In Wolff’s book, Hill gets a “B.” The EMARKETER analyst said Hill’s revitalization of Nike is going well, but there are “question marks” around its road to recovery. Chief among them are the impact of tariffs on Nike’s business and the potential for price hikes to backfire.
Nike said it’s working this year to mitigate $1.5 billion in expected tariff costs, which led the company to raise prices.
Swartz gave Hill an “incomplete” grade.
“I wouldn’t give him an ‘A’ because the turnaround is taking longer than expected,” he told Business Insider. “Nonetheless, I think the company is on the road to recovery.”
Nike reported first-quarter revenue of $11.7 billion, up 1% year over year and driven by success in North America, wholesale, and its running category.
In the long term, analysts seem optimistic about Nike’s comeback bid. Although it’s still early, Goldman Sachs analysts wrote that they expect it to “drive stronger results in product creation, brand marketing, and marketplace offense.”
The Goldman Sachs analysts outlined three key challenges ahead: the competitive sportswear market, Nike’s declining sales in China, and its struggling DTC business.
Still, Hill reminded investors during a September earnings call that it’s a marathon, not a sprint.
“We’re in the early stages, and our comeback will take time, and our progress won’t be linear,” Hill said.
