Investors will be hoping for evidence that new-ish Nike (NKE:NYSE) CEO Elliott Hill’s turnaround strategy is gaining traction when the world’s biggest sportswear firm posts first-quarter results (30 September). Bulls believe the Oregon-based running shoes-to-soccer balls brand is now at an inflection point, with sales and profit declines set to moderate as stale inventory is cleared out and new and innovative running products fly off the shelves.

Under Hill, Nike is sorting out its digital business and rebuilding relationships with wholesale partners after a previous strategy of focusing heavily on direct-to-consumer sales failed to pay off. Another challenge is competition from arch-rival Adidas (ADS:ETR) as well as new brands in running where Hoka and On have emerged triumphant, but athleisure big beast Nike is refocusing its attention on sport and innovation to fight off this threat.

Shares in Nike rallied following the delivery of better-than-feared fourth-quarter sales and earnings (26 June), with revenue of $11.1 billion for the quarter ended 31 May 2025 down 12% year-on-year but ahead of the $10.7 billion consensus estimate, while earnings of 14 cents per share topped the 13 cents analysts were looking for.

That said, the magnitude of the turnaround task facing Nike was demonstrated by the fact its operating margin was a razor-thin 2.9% and sales declined in all regions during the quarter, with China revenues of $1.48 billion coming in shy of the $1.50 billion analysts expected. Nevertheless, revenues of $4.7 billion from North America, Nike’s biggest market, were better-than-feared and the sportswear giant highlighted better momentum in Europe and the US.

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