Fashion
Nike eyes China growth, with outdoor sports revamp at the centre
By
Reuters
Published
August 22, 2025
Nike‘s push into the booming outdoor recreation market- which will kick off on Monday with the launch of a new trail running shoe- will test whether it can turn a little-known sub-brand into a meaningful growth engine.
The sportswear giant plans to unveil a version of its Ultrafly trail running shoe – branded under its outdoor sub-brand, ACG – at the Ultra-Trail du Mont-Blanc, an ultramarathon in France that begins on Monday, Nike spokesman Jay Paavonpera said.
It is part of Nike’s push to reposition ACG as a serious player in performance trail running. More broadly, the move is in line with CEO Elliott Hill’s strategy to refocus the Nike brand around core sports like running at a time when its dominance is being challenged by smaller rivals.
Nike is playing catch-up in both outdoor recreation, which has surged since the pandemic, and in China, where the populace has taken to outdoor activities like trail running in a big way. The company’s lagging performance in both markets goes some way toward explaining why its share of the global sportswear market has ebbed in recent years, analysts said. Outdoor recreation includes a range of activities including hiking and camping.
Nike-sponsored runners like Anthony Costales will race in the shoe, dubbed the ACG Ultrafly, which is set to hit shelves in spring 2026, Nike said. A similarly rebooted, ACG-branded version of the Zegama trail runner will launch later in 2025.
Brands like Salomon and Hoka “have broken out and done well” in trail running, said Morningstar analyst David Swartz, and “Nike needs to fight back.”
Doing it with ACG – short for All Conditions Gear – will not be easy. The unit, which debuted in 1989 with a focus on hiking and biking, is now associated with “gorpcore,” a fashion trend that incorporates functional gear into stylish wardrobes. It is usually relegated to a shelf or two at Nike stores, often next to “a picture of a guy walking up a mountain, or something like that,” said Swartz.
But with China and ACG, Nike may be playing a long game as it plans to expand its businesses across that market. It established its ACG team as a sub-brand in October and put Angela Dong, vice president for all of Greater China, in charge of the unit. In June, Hill said its biggest opportunity in China is “from a brand perspective, to inspire and invite the 1.3 billion consumers into the world of sport, lifestyle sport and to fitness.”
Sales of outdoor apparel nearly doubled in China between 2019 and 2025, with outdoor footwear ticking up 65% over the same period, according to Euromonitor International data. Nike, though, has logged double-digit sales declines in China in each of the last three quarters.
“China has remained a challenging market for Nike,” wrote Zacks Equity Research. The company has faced heavy competition in China from other retailers, and the nation’s own economic struggles and high youth unemployment have inhibited spending. Nike’s share of the global sportswear market has fallen to 26% from 29% in 2021, according to Euromonitor, as competitors like Hoka, the title sponsor of the Ultra-Trail du Mont-Blanc, use trail running to fuel growth. That company’s shoes were also once a niche brand before going mainstream, Swartz said.
Launching at a Hoka-sponsored event may be Nike’s attempt to steal some of its rival’s thunder, said Jessica Ramirez, co-founder of retail industry consultancy the Consumer Collective. It is a way for Nike to “flex its financial muscle” over smaller brands, Ramirez said.
© Thomson Reuters 2025 All rights reserved.
Wholesale revenue dropped 12.8 per cent on a currency-adjusted basis to €4.9 billion, while direct-to-consumer (DTC) sales increased 3.4 per cent, lifting the DTC share to 32.4 per cent from 28.9 per cent.
Regionally, sales fell 6.9 per cent in Europe, Middle East and Africa (EMEA), 7.4 per cent in Asia-Pacific and 10 per cent in the Americas, with North America driving much of the decline.
Puma has reported sales of €7.3 billion (~$8.61 billion) in FY25, with currency-adjusted revenue down 8.1 per cent amid strategic reset actions.
Wholesale declined while DTC share increased.
Margins contracted and EBIT turned negative, leading to a net loss.
Q4 saw sharper declines across regions and categories.
Puma expects further sales softness and negative EBIT in FY26.
By product segment, footwear sales decreased 7.1 per cent, apparel declined 9.7 per cent and accessories fell 8.5 per cent, although selective growth was observed in running, training and premium sport style lines, Puma said in a press release.
Profitability weakened significantly during the year. Gross margin contracted 260 basis points to 45.0 per cent, impacted by promotional activity, inventory reserves, unfavourable mix and currency effects. Adjusted EBIT turned negative at €165.6 million, while reported EBIT declined to -€357.2 million after €191.6 million in one-off costs related mainly to the cost efficiency programme and goodwill impairments.
Loss from continuing operations widened to -€643.6 million, translating to earnings per share of -€4.37 versus €1.88 in the prior year.
From a balance sheet perspective, inventories rose 2.3 per cent to €2.06 billion as inventory takebacks from wholesale partners supported distribution clean-up. Working capital increased 20.2 per cent, while trade receivables and payables declined sharply in line with reduced sales and purchasing activity. Puma ended the year with additional financing capacity, including €1,202.2 million in unutilised credit lines.
Fourth quarter (Q4) performance reflected the peak impact of the strategic reset. Currency-adjusted sales declined 20.7 per cent to €1,564.9 million, with reported revenue down 27.2 per cent due to currency headwinds. The decline was driven by deliberate reductions in wholesale exposure, inventory clearance actions and lower promotional intensity.
Wholesale sales fell 27.7 per cent in Q4, while DTC revenue decreased 8.0 per cent, although DTC share increased to 41.1 per cent from 35.5 per cent. Regionally, sales dropped 12.6 per cent in Asia-Pacific, 22.2 per cent in the Americas and 24.3 per cent in EMEA.
Across product divisions, footwear sales declined 25.4 per cent, apparel fell 13.7 per cent and accessories dropped 18.2 per cent, with selective resilience in training and performance running categories.
Profitability deteriorated sharply. Gross margin declined to 40.2 per cent from 47.7 per cent due to promotions, inventory provisions and currency effects. Adjusted EBIT fell to -€228.8 million, while reported EBIT reached -€307.7 million following one-off costs linked to restructuring and impairment charges. The quarter ended with a loss from continuing operations of -€335 million.
Arthur Hoeld, CEO of Puma, said: “2025 was a reset year for us. We want to establish Puma as a top 3 sports brand globally, return to above-industry growth and generate healthy profits in the medium term. It is crucial to make the Puma brand less commercial and ensure we once again excite our consumers with attractive products, compelling storytelling and distribution in the right channels. I am satisfied with the progress we have made so far. We cleaned up most of our distribution by reducing promotions in our own channels and cutting our exposure to those wholesale channels that damage our brand’s desirability. To better position our product icons and our performance offering and tell more engaging product stories, we created the right structures inside our company. We also addressed operational inefficiencies and further optimised our cost base.”
Looking ahead, Puma expects currency-adjusted sales in fiscal 2026 to decline in the low- to mid-single-digit percentage range, with EBIT projected between -€50 million and -€150 million. Capital expenditure of around €200 million is planned as the company continues investments in brand repositioning and digital capabilities, added the release.
Fibre2Fashion News Desk (SG)
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)
Man United up to third as Sesko’s hot streak of crucial goals continues
When We Were Young Festival announces 2026 hiatus: ‘See you in 2027’
The 5 Big ‘Known Unknowns’ of Donald Trump’s New War With Iran
Pakistan carries out precision strikes on seven militant hideouts in Afghanistan
Eye-popping rise in one year: Betting on just gold and silver for long-term wealth creation? Think again! – The Times of India
Kansas’ Darryn Peterson misses most of 2nd half with cramping
-
Business1 week ago
Eye-popping rise in one year: Betting on just gold and silver for long-term wealth creation? Think again! – The Times of India
-
Politics1 week agoPakistan carries out precision strikes on seven militant hideouts in Afghanistan
-
Sports1 week agoKansas’ Darryn Peterson misses most of 2nd half with cramping
-
Tech1 week agoThese Cheap Noise-Cancelling Sony Headphones Are Even Cheaper Right Now
-
Entertainment1 week agoSaturday Sessions: Say She She performs "Under the Sun"
-
Business1 week agoEquinox chairman says ‘health is the new luxury’ as wellness spending soars
-
Sports1 week agoHow James Milner broke Premier League’s appearances record
-
Tech1 week agoThe Supreme Court’s Tariff Ruling Won’t Bring Car Prices Back to Earth