Bloomberg Intelligence Nike’s Comeback Is Taking Shape as Sports Focus Pays Off
Oct 1, 2025
Nike is showcasing early signs of a turnaround with improved sales and product momentum as it refocuses on core sports. A shift towards direct sales is underway, with challenges arising from excess inventory and tariffs impacting margins. Meanwhile, Neptune introduces an innovative AI-driven flood insurance model, addressing weaknesses in traditional federal programs. On the energy front, growing demand for AI could revive nuclear power capacity in the U.S., supported by government backing and projections for modular reactor development.
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Nike Showing Early Turnaround Momentum
- Nike's turnaround shows early momentum as sales rose and inventories fell, signaling alignment is happening.
- Poonam Goyal says new products, innovation, and wholesale focus are combining to drive that improvement.
Wholesale Recovery Offsets Digital Weakness
- Nike's DTC fell due to a 12% digital decline while wholesale grew 7%, reflecting inventory clearance and regained shelf space.
- Goyal attributes wholesale strength to renewed partnerships like Foot Locker and Amazon presence.
China Woes Linked To Product, Not Politics
- Nike's China weakness seems more product- and inventory-driven than political backlash at present.
- Goyal warns Nike must ramp product and clear excess China inventory to improve performance there.