• by Sarah Mahoney , October 2, 2025

While Nike’s path to recovery continues to be marathon-esque, the company’s fiscal first-quarter results indicate it is on the right road. Nike exceeded sales expectations with a 1% increase in revenue, reaching $11.7 billion. (On a currency-adjusted basis, however, revenue fell 1%.)

Bright spots included a 7% jump in wholesale revenue to $6.8 billion, even as the company wrestled with ongoing problems in sportswear, Greater China, and with Nike Direct.

Net income dropped 31% to $727 million.

In Nike’s earnings call, Elliott Hill, president and CEO, positioned the results as a positive development in its nascent “Win Now” transformation plan. He said that while there is still much work to be done, especially in sportswear, Greater China, and with Nike Direct, “our new alignment will be the key to maximizing Nike’s complete portfolio over the long term.”

That plan calls for intensifying Nike’s connections to sports, rebuilding relationships with wholesale partners, clearing out overexposed lifestyle products, and innovating with new products.

Running provides a major proof point. With rapid redesigns acknowledging consumer demand for more cushioning, Nike gave the Vomero, the Structure, and the Pegasus a makeover, integrating platforms like Nike AIR, Flyknit, Zoom X and React X. Sales in that division rose 20% in the quarter.

Retail innovations were also key. Hill outlined the way Nike has overhauled its New York store to focus on a World of Jordan, a World of Nike Running, or a World of Nike Global Football. “It’s an immersive sport experience and the refresh has already led to double-digit revenue increases,” he said. The company is also working on smaller stores, such as converting an Austin, Texas store to focus only on running and training.

Nike's direct revenues fell 4% to $4.5 billion, with slower traffic raising concerns about brand appeal. Nike says it does not expect the division to return to growth this year.

And Converse sales continue to be nightmarish, down 27% to $366 million.

David Swartz, an analyst who follows Nike for Morningstar, acknowledged the signs of a comeback, but writes that “the finish line remains distant.”

Still, he is encouraged by the company’s 4% growth in North American sales, which he had been expecting to decline by 3%.

“We think retailers—like the combined Foot Locker and narrow-moat Dick's Sporting Goods—are reacting positively to Nike's new running shoe lineup,” he notes. “It will reclaim lost selling space in this and other performance categories through innovation and new marketing.”