Fashion
Nike’s turnaround gains traction, but China and tariffs weigh on outlook
By
Reuters
Published
October 1, 2025
Following its stronger-than-expected Q1 results, Nike’s leadership and analysts discussed the road ahead amid inventory cleanup, challenges in China, and a renewed focus on sports.
Nike CEO Elliott Hill vowed to return the company to its sportswear roots when he took the helm last year in a highly anticipated change, and his efforts are bearing fruit — but a sluggish recovery in China and uncertainty over tariffs remain a drag on the company.
The company, which reported a surprise rise in quarterly revenue, has aggressively cleared out aged inventory, as well as some lifestyle product lines, to focus on more innovative shoes centered on sport.
“Nike is in the early innings of its turnaround and momentum is building,” said Jefferies analyst Randal Konik in a note.
The company said on Tuesday that its order book for spring was up year-over-year, driven by its sports category, as launches such as the Vomero, Pegasus, and P-6000 running shoes bring back customers.
Running, training, and basketball categories each reported double-digit growth in the quarter in North America, enabling a return to sales growth in the region after about a year.
“We think retailers — like the combined Foot Locker and Dick’s Sporting Goods — are reacting positively to Nike’s new running shoe lineup,” said Morningstar analyst David Swartz.
Nike’s shares were up about 3% in premarket trading on Wednesday as investors welcomed a 2% reduction in inventory.
“I am very pleased with inventory levels. Units are down more than dollars as inflation starts to come through. They have largely cleared through older franchises,” said Mari Shor, senior equities analyst at Columbia Threadneedle.
The pressure points
Progress will not be linear, Hill warned on a post-earnings call, with tariffs now expected to cost about $1.5 billion — versus the $1 billion Nike estimated previously — and weigh on margins already strained by heavy discounting to clear stock.
China remains a challenging market, with intense competition from lower-priced local brands such as Anta and Li-Ning, which further exacerbates a weaker economic recovery and a struggling wholesale business.
“We can invest to keep the marketplace clean and healthy, but it’s an expensive operating model if sell-throughs don’t improve to the levels that we need to see on a season-in, season-out basis,” said Chief Financial Officer Matthew Friend on a post-earnings call.
Customer engagement also remains weak in the company’s digital business, with revenue falling 12% in the quarter. Hill said the global digital business was still working to find solid ground, with the company paring back promotions on the channel.
Nike’s direct-to-consumer business is not expected to return to growth in fiscal 2026, executives said, as the unit recovers from steep discounts used to clear out inventory of some of its classic labels, such as the Air Force One and Air Jordans.
“I originally thought that Nike would be further along. I was looking at this fall as the real breakout point, but it’s clearly not going to happen until calendar ’26,” said Swartz.
FashionNetwork.com with Reuters
© Thomson Reuters 2025 All rights reserved.
Nominal GDP, or GDP at current prices, is estimated to grow at 8.6 per cent to reach ₹345.47 trillion in FY26 against ₹318.07 trillion in 2024-25.
India’s real GDP is estimated to grow at 7.6 per cent to ₹322.58 trillion (~$3.54 billion) in FY26 compared to the first revised GDP estimate of ₹299.89 trillion for FY25 (7.1 per cent growth).
It released the new series of annual and quarterly national accounts estimates with FY23 base.
Real GVA is projected to grow at 7.7 per cent to reach ₹294.40 trillion in FY26 against ₹273.36 trillion in FY25.
Real gross value added (GVA) is projected to grow at 7.7 per cent to reach ₹294.40 trillion in FY26 against ₹273.36 trillion in FY25 (a 7.3-per cent growth rate).
Nominal GVA is estimated to grow at 8.7 per cent to hit ₹313.61 trillion during FY26, against ₹288.54 lakh crore in 2024-25.
Robust economic performance in FY26 is primarily on account of robust real growth observed in the second quarter (8.4 per cent) and third quarter (7.8 per cent).
The manufacturing sector has been the major driver of resilient performance of the economy the consecutive three fiscals after rebasing, a release from the ministry said.
Both private final consumption expenditure and grossed fixed capital formation exhibited more than 7-per cent growth rate in FY26.
Fibre2Fashion News Desk (DS)
The transition marks the formal handover of executive leadership to President and CEO Keun-Chang (Kevin) Yoon, reinforcing management continuity while preserving the founder’s long-term strategic vision.
Misto Holdings founder Gene Yoon has transitioned to honorary chairman in a planned leadership succession, formally handing executive control to president and CEO Kevin Yoon.
The founder, who expanded the group through the FILA global trademark acquisition and the takeover of Acushnet, will continue guiding long-term strategy as the rebranded Misto focuses on governance and sustainable growth.
Gene Yoon founded the business that would become Misto Holdings in the early 1990s, introducing the FILA brand to the Korean market and later leading a series of transformative transactions. In 2007, the company acquired the global FILA trademark rights through a leveraged buyout, followed by the 2011 acquisition of Acushnet Company, owner of the Titleist and FootJoy brands. The transaction was among the largest cross-border deals in Korea’s consumer sector at the time and significantly expanded the group’s global footprint.
Under his leadership, the company evolved into a multi-brand global portfolio spanning sportswear, golf equipment and apparel, generating approximately USD 3.08 billion in annual revenue.
As Honorary Chairman, Gene Yoon will remain closely engaged with the company, providing guidance on long-term strategy and global portfolio development while supporting management from a broader strategic perspective.
The leadership transition marks a new chapter under President and CEO Kevin Yoon, who has spent nearly two decades in senior roles across the group’s global operations, building deep operational and strategic expertise.
The company’s 2025 rebranding to “Misto” underscores its evolution into a global brand house focused on disciplined capital allocation, enhanced shareholder returns and sustainable long-term growth.
“Building on the founder’s legacy, our priority is to expand our global portfolio, strengthen governance and deliver sustainable value creation,” said Kevin Yoon, President and CEO of Misto Holdings.
Note: The headline, insights, and image of this press release may have been refined by the Fibre2Fashion staff; the rest of the content remains unchanged.
Fibre2Fashion News Desk (RM)
India’s real GDP estimated to grow 7.6% in FY26 under new base FY23
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