Nike’s Year of Change: A Look at the Brand’s Q1 Numbers and Leadership Swap
It’s been a year of ups and downs for Nike, and the rollercoaster ride continues. Just weeks after CEO John Donahoe stepped down to make way for brand veteran Elliot Hill, the Swoosh has released its Q1 numbers for the 2025 fiscal year – and they’re a mixed bag.
The overall brand revenue of $11.1B USD was a 10% decline on a reported basis and a 9% decline on a currency-neutral basis. This drop was fueled by sales declines across all regions as the brand’s product range – criticized for being too lifestyle-heavy and lacking innovation – lost ground to competitors like adidas, HOKA, and On.
But it’s not all bad news. Converse, which falls under the Nike umbrella, saw a 15% reported/14% currency-neutral revenue drop. And overall gross margin increased slightly.
The brand’s “investor day,” originally scheduled for November, has been postponed, likely to allow Hill to fully settle into his new role as CEO before presenting to investors.
“[These] results largely met our expectations,” said Nike CFO Matthew Friend in a statement. “We are energized ahead of Hill’s start as CEO on October 14 and are already seeing early wins in our comeback efforts.”
While Friend remains optimistic, Wall Street’s reaction has been more lukewarm. Nike’s stock fell slightly in overnight trading following the announcement. However, financial firm Jeffries raised Nike’s estimated stock price from $80 USD to $85 USD, citing investor optimism about the leadership change. However, the full effects of the swap may not be seen until FY2026.
For a more in-depth look at Nike’s Q1 numbers, head to the brand’s investor relations page. It’s clear that the brand is in a period of transition, but with a new CEO at the helm and early signs of progress, the future looks promising for Nike.
