NEW YORK, 11 February 2026 – Nike Inc. is beginning to see early signs of recovery across key international markets, with Chief Executive Officer Elliott Hill expressing growing confidence that the sportswear giant’s turnaround strategy is gaining traction, particularly across Europe and Asia, as the company works to rebuild relationships with retail partners and reinvigorate product innovation.
Hill said Nike expects its wholesale business, which accounts for roughly 60% of total revenue, to strengthen globally as the company accelerates product launches and deepens engagement with retailers, reinforcing a critical pillar of its comeback strategy.
The CEO emphasised that improving collaboration with retail partners is essential to restoring market share, noting that driving profitability for retailers ultimately strengthens Nike’s broader growth and competitive positioning.
Rebuilding Retail Relationships Central to Nike’s Recovery Strategy
Nike’s turnaround efforts come after a challenging period marked by declining sales, strained retailer relationships, and increased competition from rivals such as Adidas, On Holding, and Hoka.
The company’s previous strategy heavily prioritised direct-to-consumer channels, which alienated some wholesale partners and weakened Nike’s retail presence. Hill is now reversing that approach by restoring partnerships with traditional retail networks to drive broader distribution and sales recovery.
Wholesale recovery is especially important as Nike seeks to reestablish its leadership in global athletic apparel, with retail channels providing scale, reach, and customer engagement across multiple regions.
Nike has already seen encouraging progress in North America, with Hill stating that the company has begun regaining favour among retailers, a development he expects to replicate in international markets including Europe and Asia.
Leadership Changes and Strategic Reset Target Europe and Asia
To support its turnaround, Nike has revamped its leadership structure in key international regions, appointing experienced executives to lead its European, Middle Eastern, and Asian operations. These moves are designed to rebuild local connections and accelerate regional growth under Hill’s broader strategic reset.
Asia, particularly China, remains a critical market for Nike’s recovery strategy, despite recent sales challenges and intense competition from domestic sportswear brands. The company has acknowledged that rebuilding momentum in China will take time but remains confident that sports-driven innovation and product differentiation will support long-term growth.
Innovation and Product Pipeline Key to Restoring Growth
A central component of Nike’s turnaround strategy involves accelerating the introduction of new footwear and apparel while refocusing on its core sports heritage, including running, basketball, and performance athletics.
Nike’s renewed emphasis on sports-driven product innovation aligns with Hill’s broader vision to restore the brand’s cultural and commercial leadership.
The company has also undertaken restructuring initiatives, including job reductions and operational changes, to streamline operations, improve efficiency, and strengthen profitability as part of its long-term recovery plan.
Turnaround Progress Emerging After Prolonged Business Challenges
Nike’s recovery efforts follow a prolonged period of declining sales, inventory overhang, and margin pressures driven by tariff costs, shifting consumer preferences, and intensified competition.
Despite these headwinds, the company has begun seeing early signs of stabilisation, with improvements in inventory management, product strategy, and wholesale performance supporting a gradual turnaround.
Hill, who returned as CEO in October 2024 after more than three decades at Nike, has prioritised restoring innovation, strengthening retail partnerships, and refocusing the brand around performance sports to reignite sustainable growth.
Strategic Outlook: Europe and Asia Critical to Nike’s Global Recovery
Europe and Asia represent essential growth engines for Nike, given their large consumer bases, expanding middle class, and strong demand for athletic apparel and footwear.
Success in these regions will be critical to restoring Nike’s global revenue growth and strengthening its competitive position against emerging challengers.
For investors, Nike’s turnaround trajectory will depend on sustained product innovation, successful retail partnerships, and improved performance in key international markets.
While Hill acknowledged that the turnaround remains a work in progress, early momentum across Europe and Asia signals that Nike’s recovery strategy may be entering a more promising phase.
