Nike's "Win Now" turnaround strategy is progressing slower than anticipated, with the company reporting flat revenue of $11.3 billion in its third-quarter earnings for fiscal year 2026. Despite beating analyst expectations, shares fell over 8% after the announcement. CEO Elliott Hill admitted the comeback is taking "longer than I would like," though executives remain confident in the approach.
Running Leads Growth, Other Segments Lag
The running category is driving momentum, while Greater China, Converse, and sportswear remain in earlier stages of recovery. Digital sales declined 9% due to excessive promotions, and sportswear revenue dropped by low double digits. Nike is working to clean up inventory, a process that has taken multiple quarters.
Global Challenges and Sporting Events
Nike's turnaround faces external hurdles, including inflation, rising gas prices, and geopolitical tensions. However, upcoming sporting events like the Winter Olympics and the World Cup in North America could provide a boost. Analysts expect Nike to benefit, though possibly less than competitors like Adidas and Puma.
CEO and CFO Comments
Hill emphasized that progress varies across the portfolio, with some areas prioritized first. CFO Matthew Friend projected low single-digit revenue declines for the year, with North America gains offsetting declines elsewhere.
Turnaround Strategy
Launched in March 2025, the "Win Now" plan refocuses Nike on sports performance rather than demographics. Hill described the strategy as an "art and science" of scaling new styles. The company has warned that recovery will not be linear, with some segments improving faster than others.