Nike CEO Faces a Defining Moment as Shares Hit a 12-Year Low — Is the Brand Changing Course?

Nike is attempting to put sport back at the center of its business as falling sales, mounting investor pressure and a deepening restructuring effort test CEO Elliott Hill’s turnaround strategy.

The sportswear giant’s shares fell to their lowest closing level in more than 12 years in early October 2026, adding to concerns about the company’s direction. The decline came as Nike announced further job cuts and warned that its sales outlook was weaker than analysts had expected. Reuters reported that the company’s shares traded around $32.22 during early trading on October 2.

Hill, who returned to Nike as chief executive in October 2024 after decades with the company, has been working to restore its competitive edge. In a message to employees on October 1, he said Nike had put sport at the center of its activities over the previous year, while acknowledging that more work remained to achieve long-term progress.

Some commentators interpreted the message as an implicit acknowledgment that Nike had moved too far from its traditional sporting identity. Critics have pointed to previous campaigns involving social and political issues, including its partnership with former NFL quarterback Colin Kaepernick, as examples of the brand’s changing public image.

However, Hill did not explicitly say Nike had become “too woke,” nor did he directly blame the company’s financial struggles on its social or political messaging. That characterization comes from commentary about his remarks rather than a confirmed statement from the CEO.

Nike’s business challenges extend beyond its public image. The company has faced weaker demand in China, pressure on its lifestyle and Jordan brands, and concerns about an overreliance on older sneaker designs and discounting. Its latest quarterly revenue fell 4 percent to approximately $11.21 billion, while sales in Greater China declined sharply.

To address those problems, Nike plans to reorganize its global operations and reduce costs. The company expects its restructuring program to generate about $2.5 billion in savings over five years, although much of the benefit is expected to arrive later in the plan. Further job reductions are anticipated, with decisions affecting roles beginning in 2027.

The company is also changing its product strategy, seeking to strengthen performance footwear, improve innovation and reduce the frequency of some retro sneaker releases. Hill has acknowledged that restoring growth will take time, particularly in China and other struggling business areas.

Nike’s latest moves have therefore raised a larger question: can the company rebuild its commercial momentum by returning its focus to athletes, product innovation and sport? While some commentators frame the shift as a retreat from “woke” branding, the company’s official explanations have emphasized operational changes, product performance and long-term business recovery.

For investors, the central test will be whether those changes translate into stronger sales and sustainable growth.

Source:  dailymail