New Nike CEO faces challenges

• Elliott Hill is preparing to take over as CEO of Nike amid declining sales and market challenges.
• Nike's fiscal 2025 first quarter earnings report shows a 10% decline in revenue to $11.6 billion.
• It seems like Nike is shifting its focus from retro styles to a brand focused on running.

Nike's new CEO will have several challenges to overcome when he takes over in less than two weeks.

The sportswear giant brought veteran employee Elliott Hill out of retirement to lead the company through turbulent times, and he has a lot of work ahead of him. Nike released its earnings report for the first quarter of fiscal 2025 on Tuesday and revenue fell 10% from a year earlier to $11.6 billion.

Hill, who is scheduled to take over as CEO on Oct. 14, was not present for Tuesday's conference call. Nike withdrew its full-year guidance and said it would provide quarterly guidance instead.

Shares fell as much as 8% as Nike reported results in after-hours trading. Hill's first quarter as CEO will provide some clues about how the sportswear company plans to reverse its declining sales in the coming years.

During the earnings call, Nike claimed it was a running brand – adding that it had “intentionally reduced the proportion of our business” that was devoted to retro styles like Air Force Ones or Dunks.

“Newness and innovation” appear to be the cornerstones of Hill’s first months as CEO. He is less than two weeks away from taking office and is preparing for the role amid a port strike that could send the U.S. economy into a downward spiral if it lasts more than four weeks.

Ports from Maine to Texas were affected by the strike, and analysts say it could cost the U.S. billions each day due to supply chain disruptions.

“A comeback of this magnitude takes time, but we are seeing early wins – from momentum in key sports to accelerating our pace of novelty and innovation,” said Matthew Friend, executive vice president and CFO.