Nike Inc.’s digital and overall sales slump continued in Q3, but the sportswear giant sees early signs of progress as it pushes through a broader turnaround.

Nike Digital sales fell 15% year over year in its fiscal Q3 ended Feb. 28, 2025, the retailer reported. That outpaced the company’s overall revenue decline of 9% — and marked the fifth straight quarter of falling online sales.

However, the Q3 decline wasn’t as steep as prior quarters. Nike Digital sales fell 21% in Q2 and 20% in Q1, signaling potential early progress as new CEO Elliott Hill pushes to revive growth.

Q3 was Hill’s first full quarter at the helm since rejoining Nike in October 2024. Total revenue for the quarter fell 9% to $11.27 billion, down from $12.43 billion a year earlier. Nike Direct sales, which include digital and Nike-owned store revenue, fell 12% to $4.7 billion, driven by the 15% Nike Digital decline and a 2% dip in store sales. Elsewhere, wholesale revenue slipped 7% to $6.2 billion, largely due to weaker performance in China.

“While we met the expectations we set, we’re not satisfied with our overall results,” Hill told investors during the company’s March 20 earnings call. “We can and will be better.”

Nike is No. 13 in the Top 2000. The database is Digital Commerce 360’s ranking of the largest North American online retailers by their annual ecommerce sales. In the database, Nike is the highest-ranking Apparel & Accessories retailer.

Nike Digital sales hit by shifting consumer demand

Nike saw solid momentum in December, boosted by holiday shopping and Cyber Monday. However, sales dropped off sharply in January and February, with “double-digit declines” during both months, chief financial officer Matthew Friend told investors on the earnings call.

Some categories held up better than others. Training and running showed growth in Q3, driven by new product launches and strong sell-through, he said. But those gains were “more than offset” by weaker performance in Nike Sportswear and the retailer’s Jordan Brand, Friend said. Classic footwear saw double-digit declines, which hit Nike Digital sales especially hard, he added.

Nike Digital — which includes global sales via Nike’s website and app — is in the early stages of a reset, Friend noted. The company is working to reposition Nike Digital as a full-price channel, part of a broader push to elevate the brand and grow its direct-to-consumer business.

That means fewer discounts, fewer markdowns and shifting clearance items to Nike’s outlet stores, Friend said. Hill noted that Nike Digital in North America went from over 30 promotional days in January and February last year to zero this year.

“We’re in the early stages of repositioning Nike Digital and we’re restoring our sales organization and go-to-market processes,” Hill said.

As a result, Nike expects digital traffic to still decline by double digits in fiscal 2026, Friend said. Over time, he added, organic traffic should rebound as new product launches and brand marketing efforts gain traction.

Nike Digital sales down across regions

In North America, Nike’s Q3 revenue declined 4% to $4.86 billion. Nike Direct sales fell 10% as Nike Digital dropped 12% and physical stores 6%. Wholesale revenue increased 3%, driven by favorable shipment timing and stronger sales to value-focused retailers, Friend said.

In Europe, the Middle East, and Africa (EMEA), Q3 revenue fell 10% to $2.81 billion. Nike Direct declined 12%, with Nike Digital down 25% and store sales up 9%. Wholesale revenue decreased 3%, Friend said.

In Greater China, Q3 revenue declined 17% to $1.73 billion. Nike Direct fell 11%, with Nike Digital down 20% and store sales down 6%. Wholesale revenue fell 18%. In Q3, Friend said, traffic in the region dropped by double digits and retail sales underperformed expectations.

Friend noted that China remains a significant long-term opportunity for Nike, despite the region’s competitive and fast-changing environment.

“While the macro environment is challenging, sport is growing in China, and we must accelerate our pace,” he said.

The market there continues to be highly promotional, especially online. As a result, Nike is taking “aggressive steps” to clean up the digital channel and prioritize partner health, he said.

Meanwhile, in Asia-Pacific and Latin America (APLA), Q3 revenue declined 11% to $1.47 billion. Nike Direct fell 4% as Nike Digital dropped 8% and store sales rose 1%. Wholesale revenue was down 4%, Friend said.

New Nike CEO’s turnaround plan focuses on key markets

The Q3 results arrived roughly five months after Hill returned to Nike as CEO.

In the company’s Q2 earnings, Hill introduced Nike’s “Win Now” strategy, which aims to reignite growth amid rising competition and softer sales in key markets like North America and China.

Hill said the plan focuses on rebuilding wholesale relationships and diversifying Nike’s product mix beyond a few top-selling franchises. He noted it will take time to scale newer offerings to replace lost volume from older lines.

The strategy targets three countries — the U.S., China, and the U.K. — and five major cities: New York, Los Angeles, London, Beijing, and Shanghai, he said. Hill said Nike will invest in these key markets with in-demand products, strong local branding, and a more integrated marketplace.

During Q3, Hill said he met with wholesale partners and visited Nike’s factories and teams in Asia to review supply chain operations. He also attended this year’s Super Bowl and NBA All-Star Weekend to observe Nike’s brand activation.

Last quarter, Nike also launched its first Super Bowl ad in 27 years, debuting a new brand anthem titled “So Win.” The ad features top women athletes like A’ja Wilson, Caitlin Clark, and JuJu Watkins. The campaign highlights the challenges female athletes face, from how they’re expected to act to how they look, with narration by Grammy winner Doechii.

Nike guidance for Q4

Friend said Nike’s fiscal fourth quarter will reflect the biggest impact yet from its “Win Now” strategy. The actions are expected to weigh on revenue and margins in the near term. But Friend said headwinds should begin to ease after Q4.

He also pointed to external challenges that continue to cloud the retail landscape. These include U.S.-imposed tariffs, geopolitical tensions, and broader macroeconomic uncertainty impacting consumer confidence.

Retail sales growth slowed in February as consumers grew concerned about the new tariffs, according to the CNBC/NRF Retail Monitor. Sales still rose modestly from January and year over year, but momentum dipped after President Donald Trump announced 10% tariffs on goods from China and 25% on imports from Canada and Mexico. The Canada and Mexico tariffs were delayed, while the China tariff was later doubled to 20%.

Nike’s Q4 outlook includes the estimated effects of the U.S. tariffs on imports from China and Mexico, Friend said. The company expects revenue to decline in the “mid-teens range” for the quarter, likely at the lower end of that range, he said.

“We are focused on what we can control,” Friend said. “And for Nike at this moment, serving athletes with new product innovation and reigniting brand momentum is what matters most. Our collective experience as well as the early signals we are seeing with consumers gives us confidence in the path ahead.”

Percentage changes may not align exactly with dollar figures due to rounding. Check back for more earnings reports. Here’s last quarter’s article on Nike Digital sales.

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