Nike is vowing to ‘return sport to the centre of everything we do’ as sales fall

Nike has underperformed for some time in the face of increased competition from newer brands, and recently appointed Elliott Hill – a returning Nike veteran – to lead a revival.

The sports brand reported second-quarter revenues of $12.4b (£9.92bn) – down 8% year on year on a reported basis, or 9% on a currency-neutral basis. 

Revenues fell 13% at Nike’s direct business and were down 3% at the wholesale division.

Hill, Nike’s president and chief executive, said: “After an energizing 60 days of being back with my Nike teammates, our clear priority is to return sport to the centre of everything we do.

“We’re taking immediate action to reposition our business, so we can get back to driving long-term shareholder value. Our team is ready to go, and I’m confident you will see more moments of Nike being Nike again.”

Nike vice-president and chief financial officer Matthew Friend said the second quarter performance “largely met our expectations” and maintained; “under Elliott’s leadership, we are accelerating our pace and reigniting brand momentum through sport”.

Nike’s performance is closely watched by investors in big sports retailers that stock the brand, such as JD Sports.