• by Sarah Mahoney  @mahoney_sarah, March 21, 2025

Nike is taking a scalpel to its business — trimming inventory, recalibrating categories, and reasserting its focus on sport. With sales falling 9%  and a 16% drop looming, the company’s not sugarcoating the pain. But in bold brand moves like a high-impact Super Bowl campaign, Nike is signaling it still knows how to win hearts, even when it’s losing dollars.

In its fiscal third quarter, revenues fell to $11.3 billion, down from $12.43 billion a year ago. Footwear took the biggest hit, with Nike-branded shoes down 12% and Converse plunging 18%. Regionally, China saw the steepest decline, with sales sinking 15% when adjusted for currency. Ecommerce dropped 20%. Net income fell 32% to $794 million, slightly ahead of analyst expectations.

Still, the bigger surprise came not from what Nike reported — but from what it forecast: a dramatic 16% revenue decline ahead, as it aggressively clears out inventory and shifts focus toward product innovation and brand storytelling. Analyst Krisztina Katai, who follows Nike for Deutsche Bank, called Nike’s revelation “ripping off the Band-Aid,” resetting expectations to create space for transformation.

“Recovery is taking shape at Nike,” wrote Oppenheimer analyst Brian Nagel. While the 16% forecast is worse than the 11% most had anticipated, “underlying trends are starting to improve and set up for a potentially meaningful rebound, as transitory pressures subside and repositioning efforts take hold.”

Part of that repositioning is a renewed emphasis on performance -- particularly in running, where Nike has lost ground to upstarts like On and Hoka. Katai points to “green shoots” in recent running launches and sees signs Nike may begin to reclaim share.

At the same time, Nike is investing in the kind of emotionally resonant brand storytelling that once defined it -- and it’s already flexing that muscle.

During the Super Bowl, Nike showed up at scale for the first time in nearly three decades. The company aired “So Win,” its first Super Bowl ad in 27 years, celebrating female athletes. Jordan Brand launched its own spot, “Love, Hurts,” and Nike activated on the ground in New Orleans with a flag football push aimed at increasing girls’ participation in sport.

The results were immediate: Nike’s San Francisco flagship notched its best commercial day in a decade.

The brand also scored earned media throughout the event. Jalen Hurts, quarterback of the champion Philadelphia Eagles, wore red-and-black unbannable Jordan cleats during warmups. Kendrick Lamar performed halftime in Deion Sanders retros. Serena Williams and SZA repped Converse Chuck Taylors. “Our three iconic brands were front and center,” said Nike CEO Elliott Hill during an earnings call.

That full-funnel, moment-driven brand orchestration is exactly what Nike hopes will help it rebound. Hill emphasized Nike’s commitment to investing more in “brand storytelling that moves,” even as the company navigates tariffs, consumer caution, and competitive pressure.

Whether Nike’s mix of sport-first discipline and cultural flair is enough to reverse course remains to be seen. But for now, the Swoosh is betting that great storytelling -- grounded in sport -- still sells.