Nike’s “Win Now” turnaround strategy comes with wins and losses.
The sports giant, which is in full comeback mode under the guidance of CEO Elliott Hill, reported its earnings for the first quarter of fiscal year 2026 on Tuesday. Although Nike beat analysts’ estimates, there were areas where the company shone and other places that still have a way to go.
“We’re in the early stages, and our comeback will take time, and our progress won’t be linear,” Hill said as he wrapped up the call.
Nike reported Q1 revenue of $11.7 billion, up 1% from the year prior and driven by success in North America, wholesale, and its running category. In North America, revenue was up 4% compared to Q1 of fiscal year 2025.
The “Win Now” strategy is upheld by a sports-focused offense that has seen roughly 8,000 employees “realigned.” The running category is leading the charge as an example of where Hill and his team want to take Nike.
“Our running team moved fastest into our new formation, and was the first to get sharper on the insights of their athletes,” Hill said on the call.
Nike’s wholesale partnerships were a pain point for the brand in recent years, but the sports giant said things are looking up. Its wholesale revenues were $6.8 billion, up 7% from the year prior.
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However, the hurdles continue in Greater China, where “structural challenges” in the marketplace have led revenue to fall 10% this quarter. Hill told investors that he and his leadership team visited three cities in China a few weeks ago and said they observed the region’s interest in basketball, soccer, and healthy living.
Nike Direct, its direct-to-consumer business, and its online business are also areas that need work. While wholesale relationships are on the mend, the company is still figuring out its mission to make the two channels less promotional and more premium.
“We are working to find the right assortment and marketing mix to consistently bring consumers back to our digital ecosystem,” Hill said.
It’s clear that Nike is sprinting toward a comeback, but the track isn’t a straight one.
