Nike has released its financial results for the fourth quarter and full fiscal year 2025, which ended on May 31. The company reported USD 46.3 billion in annual revenue, with USD 11.1 billion generated in the final quarter. Greater China contributed USD 6.585 billion for the year and USD 1.476 billion in the fourth quarter, exceeding market expectations in both cases. On the day the report was published, Nike’s stock rose 15.25%, marking its largest single-day gain in nearly four years and pushing its market capitalization to USD 106.4 billion.
This was the first full-year report since Heidi O’Neill became CEO. While transformation takes time, Nike’s “Win Now” strategy is beginning to yield results. As O’Neill acknowledged, the company’s financial performance met expectations, but not the internal benchmarks it had set. To accelerate progress, Nike is implementing a new strategy called “Sport Offense,” which aims to align its teams more closely around sport.
The Sport Offense initiative will refine Nike’s brand positioning in core categories, simplify its product offerings, strengthen its storytelling, and reshape its market approach to drive growth.
Meanwhile, the numbers suggest that Nike, still one of the most storied names in global sportswear, is leaning into a period of change. Even in a challenging market, it is building momentum for long-term gains.
A difficult challenge, and a meaningful outcome
Just two hours before Nike’s earnings report went live, Faith Kipyegon crossed the finish line at Stade Charlety in Paris. The Kenyan middle distance runner clocked a personal best of 4:06.42, beating her previous record by more than a second. It was her first attempt at the “Breaking4,” a joint initiative with Nike to break the four-minute mile barrier—a feat no woman has ever achieved.
Back in April, Kipyegon and Nike jointly announced an ambitious goal: to break the four-minute mile barrier, a feat no woman has ever accomplished.
Although she did not reach the target, the attempt marked a significant moment. Kipyegon emphasized that no woman had tried before, and she believes it is only a matter of time until the barrier is broken. Her aim is to encourage more women to pursue bold goals without self-imposed limits.
This is not Nike’s first time supporting efforts to test the boundaries of human performance. At the 1984 Summer Olympics, Joan Benoit won the first women’s marathon gold medal. In 2019, Eliud Kipchoge, with Nike’s backing, became the first person to complete a marathon in under two hours. These events reflect Nike’s brand ethos and are backed by dedicated R&D and product design.
Turning the corner
Breaking4 also connects directly to Nike’s broader Win Now strategy. According to O’Neill, the plan emphasizes quick execution to enhance competitiveness by focusing on core categories, simplifying operations, and reigniting growth amid intense competition and changing consumer behavior.
In this fiscal year, Nike has ramped up its focus on running, combining product innovation with storytelling. It revamped its road running shoe lineup to emphasize cushioning, releasing models like the ultra-cushioned Vomero, the support-oriented Structure, and the responsive Pegasus. The Vomero 18 alone generated over USD 100 million in sales within 90 days, suggesting consumers are responding well to the simplified lineup.
On the athlete engagement front, Nike brought Kipchoge to Beijing and Guangzhou as part of a China tour aimed at boosting local marathon participation. At the Tokyo Marathon in March, Chinese runner Zhang Deshun, wearing Nike’s Alphafly 3, recorded a time of 2:20:53, marking the best performance by a Chinese female marathoner since 2007. The result reinforced Nike’s presence in elite running.
Nike’s emphasis on sport isn’t limited to running. It also maintained leadership in basketball. The company launched new signature shoes including Kevin Durant’s KD18 and Ja Morant’s Nike JA3. In China, Nike supported local basketball culture through the Chinese High School Basketball League and grassroots platform “Next Stop Dongdan.” It also introduced the Nike ST Flare “Blaze,” a basketball shoe tailored for outdoor play.
These product and athlete-focused efforts have been matched by backend improvements. Amid a market where brand fatigue is setting in, Nike is leaning on its foundational strengths: innovation and cultural engagement. It also made progress in managing inventory and strengthening retail partnerships.
O’Neill credited these partnerships as essential to Nike’s progress. Retailers reported stronger holiday season orders in North America, EMEA (Europe, Middle East, and Africa), and APLA (Asia Pacific and Latin America). Inventory levels showed improvement as well, with Nike reducing its lineup of legacy footwear by over 20% for the year and more than 30% in Q4. In Greater China, inventory dropped 11% compared to the previous year.
Nike aims to clear remaining excess inventory through select channels over the next two quarters, with a goal of restoring full channel health by the first half of fiscal 2026.
Targeting new segments and emotional engagement
Nike is investing in emerging growth areas too. Industry observers widely agree that women, children, and outdoor activities remain rare pockets of untapped potential for sportswear brands. The Breaking4 represents Nike’s latest bid to claim leadership in the women’s category.
Historically, women’s distance running has lagged in commercial interest and investment. With this initiative, Nike has placed a world-class female athlete at the center of both its brand storytelling and product innovation, unlocking momentum in a category with vast potential.
In April, Nike also launched the global women’s night run series, the “After Dark Tour,” in Shanghai. Over 3,500 women took part, turning the night into a celebration of performance and empowerment.
Nike continued to build a female-focused narrative during Shanghai Fashion Week in April with the “Victory Lap,” a runway event where athletes, designers, and emerging idols reinterpreted sport through a female lens, fusing function with fashion.
The brand also brought Sabrina Ionescu to China for the first time, where her personal story reportedly resonated with younger female fans. This year, Nike’s women’s basketball business grew by more than 50%.
At the same time, Nike is also tapping into youth culture in China, where emotional resonance often guides purchasing decisions. This quarter, a collaboration with Lego introduced a co-branded collection and interactive retail elements. During the 618 shopping festival, Nike Kids led Tmall’s children’s sneaker and sports categories.
Even before the earnings release, analysts had highlighted Nike’s strong appeal among younger consumers as a potential sign of recovery.
In addition to its focus on women and children, Nike is capitalizing on the growing interest in outdoor apparel. The company recently became the title sponsor of the Chongli 168 Ultra Trail and launched a Nike ACG (All Conditions Gear) training camp to offer runners technical guidance and immersive experiences. The ACG line is gaining traction both globally and in China.
As Nike expands beyond its traditional core, its long-term approach—grounded in innovation, storytelling, and local investment—is paving new paths for growth.
And if the current trajectory holds, Nike may once again defy its doubters. Its legacy, and its spirit of pushing limits, remains central to its strategy. Just as Breaking4 reminds us: dare to dream, no matter how distant the goal.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This article was written by 36Kr Brand.