Nike Inc is maneuvering through what Elliott Hill, CEO describes as the ‘middle innings’of a complex corporate comeback. Under the aggressive Win Now strategy, the Beaverton giant has dismantled the centralized, data-heavy structure of the previous era in favor of a decentralized ‘Sport Offense.’
Finalized in early December 2025, this shift eliminated high-level roles like Chief Technology Officer and Chief Commercial Officer to flatten the organization. By elevating geographic GMs to the Senior Leadership Team and appointing Venkatesh Alagirisamy as the new COO, Nike is betting that localized, faster decision-making will reignite the brand's cooling innovation engine.
Wholesale revival amidst digital declines
The most stark data point from Nike’s fiscal Q2 2026 results (ended November 30, 2025) is the dramatic reversal in channel performance. While Nike Direct revenues declined by 8 per cent, dragged down by a 14 per cent crash in digital sales, the company’s pivot back to wholesale partners like Foot Locker and JD Sports delivered a robust 8 per cent growth, reaching $7.5 billion. This rebalancing of the portfolio marks a formal end to the Direct-to-Consumer at all costs’ era. Hill notes, strengthening partner relationships is critical to ensuring product availability where consumers shop, especially as high-street competition from On Running and Hoka intensifies.
Despite achieving a modest 1 per cent revenue growth to $12.4 billion, Nike’s bottom line remains under significant duress. Net income for the quarter fell 32 per cent to $792 million, largely due to a 300-basis-point margin compression triggered by higher North American tariffs and an aggressive $1.3 billion spend on ‘Demand Creation.; To counter these pressures, Nike is rebalancing its product portfolio away from aging ‘lifestyle’ retros like the Air Force 1 and toward performance breakthroughs. The January 2026 launch of the Nike Mind footwear platform and the Structure Plus running shoe are expected to be the first major tests of this renewed athlete-centered focus.
The world's leading designer and distributor of authentic athletic footwear, apparel, and equipment, Nike’s portfolio boasts of brands like Nike, Jordan and Converse.
