Nike, one of the world’s most iconic sportswear brands, is undergoing a major transformation. After years of leaning heavily on performance marketing and direct-to-consumer strategies, the company is shifting its focus back to its roots: sports and brand building. For university students interested in business, marketing, or sports management, Nike’s pivot offers valuable insights into navigating challenges, staying relevant, and rebuilding a powerful brand.
Sports as the North Star
In a recent earnings call, Nike’s new CEO, Elliott Hill, declared a return to sports as the brand’s guiding principle. By investing in long-term partnerships with major leagues like the NFL, NBA, and WNBA, Nike is doubling down on its commitment to the athletes and communities that inspire its products. These partnerships, along with efforts to engage “everyday athletes and influencers” in key regions, aim to reestablish Nike’s presence in the sportswear industry.
This shift comes as Nike faces increased competition from trendy brands like Hoka, which have gained traction in categories where Nike once dominated, such as running. For students, the lesson here is clear: staying connected to your core audience and values is essential for long-term success.
From Performance to Brand Marketing
One of the biggest changes Nike is making is reallocating resources from performance marketing—targeted, data-driven campaigns focused on immediate sales—to brand marketing, which emphasizes storytelling and cultural resonance. Nike’s leadership believes this approach, which helped turn the brand into a global cultural phenomenon, is key to driving innovation and maintaining its premium status.
“We’re starting to shift dollars from performance marketing to brand marketing,” Hill explained. “We will invest in our fields of play, because that’s where we drive our product innovation, our newness, our distinction.”
The move also includes a reduction in promotional discounts to reinforce Nike’s positioning as a premium, full-price brand. This strategy, while risky, aligns with the company’s efforts to rebuild its cultural cachet and avoid overreliance on short-term sales tactics.
Winning Isn’t Comfortable: Creative That Resonates
Nike is already showing what its renewed focus on brand marketing looks like. Around the Summer Olympics, the company launched “Winning Isn’t for Everyone” and its running-focused extension, “Winning Isn’t Comfortable.” These campaigns celebrated the relentless drive of elite athletes, featuring bold, unapologetic messaging that resonated with audiences worldwide.
The success of these campaigns—“Winning Isn’t Comfortable” was even named Ad Age’s Campaign of the Year—proves that Nike still has the creative chops to inspire. For students studying advertising or branding, this is a reminder that emotional storytelling and strong visuals can leave a lasting impact.
The Road Ahead
Despite these bold moves, Nike faces significant challenges. Revenues declined 8% year-over-year in Q2 2025, with digital sales down 13% and wholesale slipping 3%. To regain its footing, Nike must navigate inventory issues, strengthen its ground game in key regions, and differentiate itself in an increasingly competitive market.
Yet, the brand’s leadership remains optimistic. “Ultimately, with sports as our North Star, we will reenergize our culture and identity,” Hill stated.
Lessons for Students
Nike’s turnaround offers valuable takeaways for university students:
- Focus on Core Values: Whether it’s sports or sustainability, staying true to your mission helps build trust and long-term success.
- Adapt to Change: Nike’s pivot shows the importance of recognizing when a strategy isn’t working and having the courage to course-correct.
- Invest in Storytelling: Bold, emotionally resonant campaigns are more than just ads—they’re tools to inspire and connect with audiences.
As Nike works to reclaim its position as a cultural and sports icon, it’s a reminder to students that setbacks are opportunities to refocus and innovate. The question is: how will you apply these lessons to your own goals?