The numbers
$12.4 billion – Nike’s second quarter earnings, up 1% year-over-year
$12.1 billion – Quarterly revenues for the flagship Nike brand, up 1% and driven by growth in North America, which offset declines in Greater China, Asia Pacific, and Latin America
$4.6 billion – Nike Direct earnings, down 8% year-over-year
$7.5 billion – wholesale revenues, up 8% primarily driven by growth in North America
$300 million – Converse’s revenue for the quarter, down 30%
Watercooler talk
Just over a year into his role as chief executive (CEO), Elliott Hill said Nike is “in the middle innings of our comeback.”
Though Nike’s results were “slightly better than we had anticipated 90 days ago,” Hill said the company is “nowhere near our potential.”
Nike’s “Win Now” turnaround plan, paired with its “Sport Offense” strategy, is focused on reversing years of sluggish sales and restoring the brand through “athletes, product innovation, [and] sport moments,” Hill said.
North America was a bright spot for the business, and Hill cited successful marketing moments in the region, such as Nike’s campaigns for the Los Angeles Dodgers’ World Series win and the Chicago Marathon. In September, Nike released its “Why Do It?” campaign, a significant marketing moment that saw the brand tweak its “Just Do It” slogan to reach Gen Z.
Nike’s marketing team will make “significant investments” in soccer ahead of the 2026 World Cup, Hill said.
The company also plans to launch Nike Mind, a new footwear platform to help athletes prepare for performance and competition, in January, and roll out its NikeSkims collection internationally.
China, where Q2 revenue declined 16%, is lagging for the business but represents “one of the most powerful long-term opportunities in sport,” according to Hill.
Nike also took a hit from tariffs, reporting a gross margin decrease of 3 percentage points and inventories down 3%.
