Gathering strength against the headwind, Nike awaits a turnaround.

Recently, Nike released its financial report for the fourth quarter and the full year of fiscal year 2025 (ending on May 31, 2025). Among them, Nike's annual revenue reached $46.3 billion, and its revenue in the fourth quarter was $11.1 billion. Specifically, Nike's annual revenue in Greater China reached $6.585 billion, and its revenue in the fourth quarter was $1.476 billion. The overall performance exceeded expectations. On the day after the release of the financial report, Nike's stock price rose by 15.25%, marking the largest single - day increase in nearly four years. Its total market value exceeded $100 billion, reaching $106.4 billion.

This is the first full - year "report card" since Nike's new CEO, John Donahoe, took office. Adjustment is never achieved overnight. As the "Win Now" plan is gradually implemented, the transformation results of the Nike Group are becoming increasingly evident. As John Donahoe said, "Although the financial performance met expectations, it has not reached our goals. Entering the new fiscal year, we are turning a new page. Next, we will adjust our team with sports as the guide, which we call 'Sport Offense'. This will accelerate the implementation of the 'Win Now' plan and reposition the business for future growth."

The "Sport Offense" focuses on brand differentiation in core sports fields, improves the product matrix, tells inspiring brand stories, and comprehensively enhances the market landscape and business growth.

Judging from the current results, Nike, this legendary industry giant, is actively embracing change and building new capabilities during the challenging period, in order to accumulate strength and achieve new growth when the market trend changes.

"The Sub - 4 Challenge" and a $100 - Billion Market Value

Just two hours before Nike announced its fiscal year 2025 performance report, on the other side of the ocean, at the Stade Charléty in Paris, Kenyan middle - and long - distance running star Faith Kipyegon was sprinting across the finish line. She completed the "Sub - 4 Challenge" with a personal best time of 4 minutes and 06.42 seconds (1.22 seconds faster than before).

In April this year, Kipyegon and Nike jointly announced that they would aim for another milestone in track and field history: to become the first female runner to break the 4 - minute mark in the mile.

Although Kipyegon failed to achieve the goal this time, the significance of the challenge is clearly greater than the result itself. As she said, "No woman has ever successfully attempted this before. It's like climbing a mountain that no one has ever scaled." In her belief, one day, a woman breaking the 4 - minute mark in the mile will become a reality. Kipyegon hopes to convey to more women the belief that they should dare to pursue their dreams instead of limiting themselves.

Actually, the Sub - 4 plan is not Nike's first attempt to "break human limits".

At the 1984 Los Angeles Olympics, Joan Benoit won the first women's Olympic marathon gold medal. This milestone moment was defined by Nike as the brand's first "moon landing moment". Then, on October 12, 2019, with Nike's support, Eliud Kipchoge completed a marathon in 1 hour, 59 minutes and 40 seconds, achieving the breakthrough of breaking the 2 - hour mark. For Nike, each challenge is not only a sports event but also a concrete manifestation of its brand spirit.

Behind these feats, Nike has fully utilized its sports science research and professional design technology to create the latest integrated racing equipment "born for speed" for athletes. Each equipment upgrade represents Nike's R & D system's active pursuit of "human limits". This spirit of constantly breaking limits also continuously injects vitality into Nike's long - term development.

Transformation Implementation: Nike Breaks Through Dilemmas One by One

Of course, the "Sub - 4 plan" can also be regarded as part of the "Win Now" plan. As John Donahoe previously stated, the key to the "Win Now" plan is to reshape brand competitiveness through rapid action, focus on core sports fields, optimize operational efficiency, and reactivate market growth to cope with intensified market competition and changes in the consumption environment.

In this fiscal year, Nike has accelerated its development in the core running business. Driven by "innovation technology" and "storytelling", it has further consolidated its leading position in the running sports market.

It is reported that this year, Nike has systematically and comprehensively upgraded its road running shoe product matrix. Focusing on the cushioning performance that runners care most about, it has launched innovative products to meet the needs of different runners.

This includes the Vomero series that provides super - strong cushioning, the Structure series that features supportive cushioning, and the Pegasus series that offers rebound cushioning. Within the past 90 days, the single - product sales of the Vomero 18 exceeded $100 million, which proves the market's high recognition of Nike's simplified running shoe matrix.

Nike Vomero 18, leading in super - strong cushioning

In terms of cooperation with athletes, in this fiscal year, Nike invited marathon legend Eliud Kipchoge to visit Beijing and Guangzhou, launching the "2024 Kipchoge Speed - Breaking China Tour" to help boost the development of marathons in China. At the Tokyo Marathon in March this year, Chinese athlete Zhang Deshun ran a remarkable time of 2 hours, 20 minutes and 53 seconds in Nike Alphafly 3, setting the best result for Chinese female marathoners since 2007, which further consolidated Nike's advantage and reputation in the professional track field.

Not only in running, but also in the basketball business, Nike has been continuously strengthening its efforts, and its industry position remains unshakable.

During the reporting period, Nike successively launched new performance basketball shoes such as the 18th signature shoe of Kevin Durant, the Nike KD18, and the signature shoe of Ja Morant, the Nike JA3. At the same time, Nike also attaches great importance to building a unique basketball culture in the Chinese market, especially by rooting in local communities.

Currently, Nike and the Jordan brand are deeply involved in campus and grassroots basketball through a series of events and experiences such as "Stay After Class", "Nike High School Basketball League" and "Next Stop: Dongdan", continuously deepening the construction of the local basketball ecosystem. On the product side, in April this year, Nike also launched a special outdoor basketball shoe, the Nike S.T. Flare "Flame", for Chinese basketball enthusiasts to adapt to the diverse court conditions in Chinese outdoor basketball courts.

The national finals of the 2024 - 25 Nike China High School Basketball League came to a successful conclusion at the Wukesong Arena in Beijing

It is an obvious fact that in the current situation where the sports footwear and apparel industry is facing homogeneous competition, Nike is returning to the brand's fundamental principle of "driving development through innovation and binding emotions through culture". In addition, in this fiscal year, Nike has also made breakthroughs in optimizing inventory and partner relationships.

At the earnings conference, John Donahoe also said that "the company's success is inseparable from its partners." Nike always hopes to achieve win - win results with distributors, jointly meet consumer needs, and build a healthier and more sustainable positive growth model. Some cooperating retailers reported that the total order volume during the holiday season was higher than the same period last year, with growth achieved in North America, EMEA, and APLA regions.

It is also worth mentioning that with the market's recognition of the new product series, Nike's inventory structure has been significantly optimized. In fiscal year 2025, Nike made substantial progress in reducing the classic shoe series, with a year - on - year decline of more than 20%. In the fourth quarter, this decline further expanded to over 30%. Meanwhile, in Greater China, Nike's inventory level decreased by 11% year - on - year.

According to the plan, in the next two quarters, Nike will continue to clear excess inventory through outlet stores and specific channels, aiming to achieve channel clearance and market recovery in the first half of fiscal year 2026.

Strengthening Emotional Consumption and Building for the Future

In addition to reforming and making efforts in the core sports business and core channels, Nike has always focused on the development of emerging markets.

It is generally recognized in the industry that the female, children's, and outdoor sports sectors are among the few growth markets for sports brands at present. The "Sub - 4 plan" is a key measure for Nike to re - evaluate and capture the female sports market.

For a long time, women's running has been limited by resource investment and commercial attention, and its development speed and commercialization degree have generally lagged behind men's events. Nike's "Sub - 4 plan" focuses on top - level female athletes. The related product and technology innovation will activate and leverage the huge potential of the female sports market.

In April this year, Nike officially launched the global women's night - running series, the "2025 AFTER DARK TOUR", in Shanghai. Running together with 3,500 female runners, it aimed to "leave the night behind" and release women's passion for running.

Actually, Nike has always been emphasizing the "female narrative". At the Shanghai Fashion Week in April, Nike presented the "VictoryLap - Leading the Way". At this show, professional athletes, fashion designers, and emerging idols deconstructed the sports spirit through design language, creating a new female style originating from the track.

In the basketball field, Nike invited athlete Sabrina Ionescu on her first trip to China. Her real and inspiring story has inspired countless women who love basketball and helped build a deeper emotional connection with them. In this fiscal year, Nike's women's basketball business also grew by more than 50%, fully demonstrating the market's high attention to women's basketball.

It is worth mentioning that Nike is also actively catering to the needs of the "young generation" in the local market, especially the current trend of "emotional consumption" in the Chinese market, in order to accompany the new generation of consumers as they grow.

In this quarter, Nike collaborated with Lego to launch a series of co - branded products and creative play - based interactive experiences, encouraging young people to release their happy nature and stimulate their passion for sports. During the 618 shopping festival this year, Nike Kids topped the full - cycle rankings of children's shoes and children's sports on Tmall.

Before Nike released its financial report, some analysts pointed out Nike's brand appeal among young consumers and predicted an upward trend in Nike's future performance.

In addition to the female and children's segments, Nike is also following the "outdoor wave". It has exclusively sponsored the Chongli 168 Ultra - Trail Race and established the Nike ACG Chongli 168 Training Camp to help runners improve their trail - running skills in multiple dimensions and fully promote the revival of the ACG brand globally and in the Chinese market.

It is certain that Nike has never stopped exploring and understanding the growth markets. With a long - term perspective, Nike is building deeper competitive barriers through continuous innovation, strengthening emotional connections, and increasing local investment.

It is believed that in the future, Nike will use more outstanding performance to dispel all external doubts. It will also prove to consumers and investors that Nike is still the Nike that can continue to write legends. Its brand spirit of self - breakthrough and limit - challenging will continue. Just as the concept conveyed in the "Sub - 4 plan" - bravely pursue your dreams without fear of lofty goals.