Bloomberg Intelligence Nike’s Comeback Is Taking Shape as Sports Focus Pays Off
Oct 1, 2025
Nike is showcasing early signs of a turnaround with improved sales and product momentum as it refocuses on core sports. A shift towards direct sales is underway, with challenges arising from excess inventory and tariffs impacting margins. Meanwhile, Neptune introduces an innovative AI-driven flood insurance model, addressing weaknesses in traditional federal programs. On the energy front, growing demand for AI could revive nuclear power capacity in the U.S., supported by government backing and projections for modular reactor development.
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Margins Have A Long Road Back
- Nike's EBIT margin is still low at 7.1% and tariffs have raised excess costs to $1.5 billion, pushing margin recovery further out.
- Goyal expects a long runway before historic margins and double-digit EBIT return.
Price Up New Premium Launches, Not Basics
- Do raise prices selectively on premium launches rather than on sub-$100 products to manage tariff cost pressure.
- Goyal explains consumers accept higher pricing on innovative, high-end sneaker launches more readily.
Running Is Back — Competition Heats Up
- Running demand has returned and is driving performance momentum that previously benefited brands like Hoka and On.
- Goyal warns Nike needs strong product innovation to defend share in running.