Nike has delivered quarterly results that surpassed investor expectations, showing early signs of recovery in its ongoing turnaround plan. The sportswear giant posted $11.7 billion in first-quarter revenues, a 1% increase year-over-year, despite challenges in some key divisions.
The flagship Nike brand generated $11.4 billion, up 2% compared to the same period last year. Wholesale sales also saw growth, climbing 7% to $6.8 billion. However, Nike Direct revenues fell by 4% to $4.5 billion, and Converse suffered a sharp 27% decline, dropping to $366 million for the quarter.
Chief executive Elliott Hill framed the results as just the beginning of a long-term effort: “Our journey back to greatness has only just begun,” he said during the earnings call.
To revive its momentum, Nike has restructured its business around sports categories rather than gender or age lines. The company is doubling down on major sporting moments and athlete-driven communities, with campaigns like its latest Super Bowl ad spotlighting running, basketball and football. That bet is starting to pay off: Nike’s running division grew by more than 20% this quarter.
Hill emphasized that the new structure is improving clarity: “In the marketplace, organizing by sport gives us a much clearer point of view.”
Another highlight came from the brand’s bold collaboration with Kim Kardashian’s Skims, resulting in the launch of NikeSkims in September—the first time Nike has co-created an entirely new brand with an external partner. Early consumer response has been described as “very strong.”
Still, the company faces significant hurdles. The ongoing trade dispute with China and the tariffs introduced under President Donald Trump are weighing heavily on costs. Nike estimates that tariffs will cost the company about $1.5 billion annually, up from $1 billion projected earlier this year.
Hill acknowledged the challenges ahead: “There is significant work ahead, especially in the areas of sportswear, Greater China, and Nike Direct. Progress won’t be perfectly linear, but the direction is.”
