Chronological coverage updated 1st October 2026 21:51.
Update 1 · 1st October 2026
Nike Struggles to Rebound as High-Profile Athlete Departures Dent Turnaround Strategy
Strategic missteps and market share erosion
Sportswear manufacturer Nike is battling to reverse a prolonged period of declining sales and shrinking market dominance. Under chief executive Elliott Hill, who returned from retirement to helm the firm, the company has initiated an operational restructuring to reclaim customer interest from agile rivals.
Strategic shifts under previous leadership—including cutting wholesale ties with traditional physical retailers to focus heavily on direct-to-consumer online sales—damaged the brand's standing. Crucially, reduced expenditure on core product innovation enabled newer competitors such as On and Hoka to claim valuable retail shelf space.
Nike's share price tumbled by 75% over five years, resulting in its ejection from the S&P 100 stock market index..
Loss of flagship athletic talent
The firm's recovery efforts suffered a blow following the departure of Real Madrid striker Kylian Mbappé, who terminated his two-decade relationship with Nike to join Swiss brand On. Mbappé's departure follows the loss of other prominent talents, including Spanish star Lamine Yamal to Adidas and golfer Tiger Woods ending his partnership in 2024.
BBC News reportedly quoted Matt Powell (veteran analyst and adviser in sports retail) as saying: “The more broadly available those shoes became, the fewer people were interested,”.
BBC News reportedly quoted Tim Derdenger (academic in marketing and strategy) as saying: “It's not the future and it's not the current and that is what drives apparel sales today.”.
- Nike's retreat from retail partners and neglect of core product innovation severely weakened its competitive advantages.
- Competitors like On and Hoka are capitalizing on Nike's missteps and poaching top global athlete endorsements.
