What’s Going Wrong at Nike?

Nike has long been an unstoppable force in trainers, apparel and athlete endorsements. But in recent years, it saddens me to say, cracks have begun to show.

From faltering innovation to ethical concerns and a major financial hit in 2024, the sportswear giant is facing real challenges.

As a lifelong Nike fan even i’m branching out into brands like Saucony, Satisfy & Soar - which is really saying something!

So, what’s going wrong with Nike? And more importantly, what does it need to do to reclaim its throne?

1. A Financial Blow—$28 Billion Wiped Off in a Day

Nike suffered its worst trading day in decades in summer 2024, when its stock plummeted, wiping a staggering $28 billion off its market value. The sharp decline followed a disappointing earnings report, with weaker sales and slowing growth, particularly in North America and China.

This wasn’t just a bad day—it was a wake-up call. Investors are losing confidence in Nike’s ability to stay ahead in an increasingly competitive market. And the problem isn’t just external pressures; it’s internal missteps that have left the brand vulnerable.

2. Losing Its Direction & Specialisation

One of Nike’s biggest missteps in recent years has been losing its focus. Once known for groundbreaking innovation in Running, Basketball, Golf, American Football…the list goes on. The brand now seems stretched thin, trying to appeal to everyone without mastering anything in particular.

Meanwhile, smaller, specialist brands have surged ahead. Hoka and On Running, for example, have taken the running market by storm with highly technical, performance-driven products. Similarly, Salomon and inov-8 are dominating trail running, while New Balance has made a massive comeback with elite-level running shoes.

Nike, on the other hand, has been slower to innovate in these spaces more recently. Its running shoes, once the gold standard, are now often overshadowed by newer brands that prioritise specialisation over mass appeal. Saying that, i still love my Vaporfly’s for long distance road runs!

For Nike to regain its dominance, it needs to redefine its core strengths and stop trying to be everything to everyone.

3. Ethical & Supply Chain Woes

Nike has long battled ethical concerns over its supply chain, and those issues still haven’t gone away. Reports of underpaid workers and poor conditions in factories across Asia have resurfaced, leading to shareholder activism and growing public scrutiny.

In a world where brand ethics matter more than ever, Nike’s reputation is at risk. While competitors are making sustainability and ethical production a core part of their identity, Nike still feels reactive rather than proactive in this space.

The fix? Transparency, ethical sourcing, and genuine change—not just polished PR campaigns.

4. Sales Are Slipping

Nike’s biggest strength has always been brand power, but even that isn’t enough to maintain sales when consumers have more choices than ever.

The brand’s shift towards direct-to-consumer (DTC) sales has also proven risky. While cutting out middlemen should, in theory, boost profits, it has meant weaker relationships with key retailers. Meanwhile, competitors like Adidas and New Balance have struck a better balance between DTC and wholesale partnerships.

Nike must rethink its retail strategy, ensuring that its products feel desirable and exclusive rather than simply everywhere.

5. Sustainability—More Talk Than Action?

Nike has positioned itself as a leader in sustainability, but is it doing enough?

Its “Move to Zero” campaign, which aims for zero carbon emissions and zero waste, sounds great on paper. But compared to brands that have built sustainability into their DNA—like Veja in footwear or Patagonia in apparel—Nike’s progress feels slow.

Younger consumers care deeply about sustainability, and they can see through greenwashing. If Nike wants to win back loyalty, it needs to accelerate its sustainability efforts and prove that it’s serious about real change.

6. A Leadership Crisis & Identity Problem

Nike’s leadership shake-up in 2024, with Heidi O’Neill and Craig Williams stepping up to lead the business, signals a potential shift in strategy. But the real challenge is rediscovering Nike’s core identity.

For decades, Nike’s marketing was razor-sharp—built around elite athletes and an aspirational spirit. Now, the brand seems caught between mainstream appeal and performance authenticity, failing to dominate in either.

In my humble opinion, if Nike is to reclaim its top spot, it needs to:

✅ Get back to true innovation, not just small updates to old models

✅ Specialise again

✅ Fix its supply chain & ethics—before consumer trust erodes further

✅ Make sustainability real—not just a branding exercise

✅ Reignite its brand identity—remind the world what Just Do It really means

Nike still has the brand power, resources, and legacy to bounce back. But it needs to act fast before the competition fully closes the gap.