• by Sarah Mahoney , June 30, 2025

Image above: Nike’s Vomero is helping to revive the running category.

Nike’s fourth-quarter results paint a grim picture, with revenues down 12% and profits plunging 86%. But Wall Street analysts say the company’s reset may be starting to work, as Nike leans harder into its sports roots — and away from its reliance on iconic lifestyle franchises.

Fourth-quarter revenues fell to $11.1 billion, with full-year sales down 10% to $46.3 billion. Nike brand sales dropped 11% to $10.8 billion, and Converse sales fell 26%. Net income sank to $211 million, compared to $1.5 billion a year ago.

Still, analysts saw bright spots. Krisztina Katai of Deutsche Bank called the report “the best green shoots yet,” citing rising wholesale orders for the holidays and strong demand for new performance-driven gear. “Newness across sportswear and lifestyle silhouettes” is helping offset fatigue in classics like Air Force Ones and Dunks.

Brian Nagle of Oppenheimer echoed that tone. “Underlying trends at the company are starting to improve,” he wrote. “We see potential for a meaningful rebound as repositioning efforts take hold.”

Nike warned that tariffs will weigh on future performance, estimating a $1 billion hit. And some observers remain skeptical that the brand can rekindle consumer excitement.

“In core markets, particularly North America, Nike is suffering from a more constrained consumer and a relative inability to inspire and interest shoppers,” wrote Neil Saunders, managing director of GlobalData. “A boredom factor has settled over the Nike brand… It has also lost ground in key categories such as running.”

To change that, Nike is doubling down on athletes. Its performance running category posted high single-digit gains, despite pressure from rivals like Hoka, On and New Balance.

That pivot is reflected in recent marketing wins. Nike sponsored Faith Kipyegon’s mile-record attempt in Paris. While she didn’t crack the four-minute mark, her 4:06.42 mile set a new women’s world record — shaving 1.22 seconds off her own previous best. The feat electrified the running community and gave Nike a rare edge in performance storytelling.

And buzz continues around the just-launched Caitlin Clark Kobe 5 Protro PE, which reportedly sold out in minutes.