Nike, the world’s largest sportswear brand, is undergoing a critical transformation. After years of uneven growth and mounting competition, the company’s new CEO, Elliott Hill, is steering the brand toward what he calls a “return to sport and innovation.” Nearly one year into his leadership, Hill has introduced a strategic overhaul aimed at rebuilding the brand’s presence both in stores and in the hearts of consumers.
Nike’s Path to Recovery
Once valued at record highs during the pandemic, Nike’s market capitalization has since fallen to less than half of that level. In one of the company’s toughest trading sessions last year, it lost approximately $28 billion in market value in a single day—its worst drop in history. Despite this, Hill remains confident that the iconic swoosh can rise again.
“On my first day as CEO, I made it clear that Nike is both a sport company and a growth company,” Hill told CNBC during an interview at Nike’s headquarters in Beaverton, Oregon. “When we grow sport, we grow the marketplace—and when that happens, we win.”
Reorganizing Around Sport
One of Hill’s key changes has been reorganizing the business model. Instead of focusing on product categories like men’s, women’s, and kids’ apparel, the company has restructured itself around specific sports—such as running, basketball, and football. This, he says, will help “bring back the sharpness of sport” that once defined Nike’s identity.
By refocusing on performance and athletic purpose, Hill believes Nike can strengthen its connection with athletes and consumers who view the brand as a symbol of excellence. This sport-first mindset also allows Nike to compete directly with newer brands like On Running and Hoka, both of which have gained traction with their high-performance footwear.
Competition Heats Up
Over the past few years, Nike’s slower pace of product innovation and its decision to pull back from some wholesale partnerships gave competitors an opportunity to fill the gap. As Stacey Widlitz, president of SW Retail Advisors, explained, “When Nike withheld some of its best products from wholesale partners, someone else stepped in to fill those shelves.”
This strategy began under former CEO John Donahoe, who prioritized the company’s direct-to-consumer (DTC) model. The idea was simple: boost margins by selling directly through Nike stores and its online platform. Initially, this plan seemed successful—direct sales grew rapidly during the pandemic when consumers shopped online. But as retail reopened, the momentum slowed, and Nike found itself missing the broad reach that wholesale channels once provided.
Reclaiming Lost Shelf Space
Hill’s approach signals a notable shift from the DTC-heavy focus of the past. “We opened shelf space, and now we’re having to earn it back,” Hill admitted. The new plan emphasizes rebuilding partnerships with key retailers such as Foot Locker and Dick’s Sporting Goods. By returning to these channels, Nike aims to reclaim visibility and restore trust among retail partners who had felt sidelined.
Industry experts believe this hybrid strategy—balancing direct sales with wholesale distribution—will be crucial for Nike’s rebound. It provides flexibility to reach more consumers while maintaining control over brand presentation and pricing.
Focusing on Innovation and Trust
Although Hill has not yet disclosed details of upcoming products, insiders say the focus will be on innovation, performance, and sustainability. Nike’s history is built on technological breakthroughs—from Air cushioning to Flyknit—and Hill’s goal is to reignite that creative spirit.
Beyond products, the brand is also working to rebuild consumer trust. The recent period of stagnation saw Nike losing some of its cultural momentum, especially among younger consumers. By reconnecting with the values of sport—competition, authenticity, and community—Hill hopes to restore Nike’s emotional bond with its global audience.
Challenges Along the Way
Despite the optimism, Nike’s comeback journey is not without hurdles. The company still needs to clear excess inventory built up during the supply chain disruptions of recent years. It also faces an estimated $1.5 billion in tariff-related costs, putting pressure on margins. In addition, the rise of nimble competitors who can rapidly adapt to trends poses a constant challenge.
To navigate these issues, Nike is strengthening its logistics network, improving inventory forecasting, and refining its digital strategy to ensure that both online and in-store experiences remain seamless. These efforts are expected to improve efficiency while supporting a more agile supply chain.
Employee Morale and Internal Culture
Insiders report that morale at Nike’s Oregon campus has improved under Hill’s leadership. His background as a long-time Nike executive—spanning over three decades—has earned him credibility within the company. Many employees see his return from retirement as a stabilizing force during a turbulent time.
“Elliott brings a deep understanding of the brand’s DNA,” said one executive. “He’s not just making operational changes—he’s re-centering Nike around what it means to inspire athletes.”
A New Offense for a New Era
Hill describes Nike’s new direction as “a fresh offense.” Rather than defending market share, the company plans to go on the attack—launching innovative products, re-engaging with retailers, and amplifying its storytelling through global campaigns.
He remains clear about one thing: “We’re a sport company first. When we grow sport, we grow everything that comes with it.”
The Road Ahead
Nike’s transformation will take time, but the early signs are promising. By aligning operations around sports, embracing a multi-channel strategy, and rekindling its legacy of innovation, Nike hopes to remind the world why it remains the most recognized athletic brand on the planet.
If Hill’s strategy succeeds, it won’t just be a financial turnaround—it will mark a cultural reset, reaffirming Nike’s position as the global symbol of athletic excellence.
