Can Nike reclaim its cultural credibility?

Though Nike once stood at the global intersection of sport and culture, in 2025, the Swoosh’s reputation is no longer so enriched with progressive innovation. It is becoming a symbol of declining cultural impact among high-performance competitors. The sportswear giant’s revenue declined 9% YoY to $11.3 billion in Q3 FY2025, even as it exceeded analysts’ modest expectations. A deeper read of the numbers tells a grimmer story: direct-to-consumer revenue declined 12%, wholesale dipped 7%, and Greater China, once a Nike stalwart, decreased 15%. Nike announced in September last year that CEO John Donahoe would step down, with company veteran Elliott Hill taking over on October 14, 2024. Donahoe, who became CEO in January 2020, led the company through the Covid-19 pandemic and a significant shift to direct-to-consumer sales. However, this strategy led to strained relationships with wholesale partners, reduced product innovation, and a decline in market share, prompting the leadership change. What’s hurting Nike in China and the US? Put simply, Nike’s brand identity has had a tumultuous few years; along with a muddled marketing strategy that has left the brand feeling somewhat confused, the company is currently in the midst of multiple lawsuits, from highly-publicized gender discrimination, to being sued over the closure of its crypto-business with RTFKT. Nike’s revenue in China fell 17% in Q4 2024, and while Chairman and CEO of Nike Greater China Wei Dong frames the shift as part of a “healthier market foundation,” rivals are exploiting the turbulence. Adidas has surged ahead, bolstered by agile innovation and market-specific storytelling, as well as cult brand collaborations, such as its Wales Bonner lines. Flashy 2024 drops like the Supreme Air Force 1s, Nike Air Max releases, and the Phantaci Air Max 1 Grand Pianos, and a Jordan-focused flagship in Beijing featuring collaborations with local artists, didn’t move the needle. Local players like Anta and Li-Ning continue to capitalize on national pride and regional relevance, while global competitors like On, Hoka, and Lululemon win on performance and community, not just celebrity. NikeSkims and the brand’s misstep with women Perhaps nowhere is Nike’s struggle more stark than in its approach to women. The February launch of its women-focused brand collaboration with Skims generated criticism, even from past employees. “I felt compelled to share my thoughts on the NikeSkims partnership with Kim Kardashian,” wrote former Nike exec, brand strategist Gina Clementi in a widely shared LinkedIn post. “The pivot from performance-focused innovation to products promising to make women feel ‘sexy’ represents a troubling departure from the Nike I knew and loved.” Clementi continued her critique in a follow-up interview with Jing Daily. “This new brand reflects a long-standing issue in how Nike shows up for women globally,” she says. “In markets like China, where ideals of femininity are already tightly linked to aesthetics, leading with messaging of feeling ‘strong and sexy’ instead of sport reinforces harmful dynamics.” Nike had not responded to Jing Daily's request for comment as of publication. Across sneakerhead forums and on social platforms, disillusionment is growing. Some consumers cite declining quality, uninspired innovation, and pricing parity with more premium peers like Lululemon, without the product to back it up. Why Nike’s cultural strategy feels outdated Nike’s core value proposition has always been about athletic excellence. Yet, Clementi asks a pointed question: “Is this NikeSkims launch a PR play amid broader rollbacks in DEI? Or a ‘Hail Mary’ to investors after gender discrimination lawsuits and executive turnover?” The business’ once-celebrated approach to women’s sport now feels inconsistent. “Nike already has the tools and the talent,” Clementi adds. “What it needs is focus. The women’s business has to be more than a side project, it has to be a strategic priority.” Can Nike return to its performance-first roots? With Hill installed as CEO, there’s talk of returning to Nike’s innovative roots. But entanglement in that gender discrimination lawsuit and rising activewear competition mean change needs to be dramatically substantial rather than performative. “Launching a brand like NikeSkims without product, performance validation, or athlete involvement feels out of step … Nike doesn’t just sell product, it sells identity. They’ve never had to chase trends. If they want to stay culturally relevant, especially with women around the world, they need to lead with performance — not aesthetics,” says Clementi. The question isn’t whether Nike can survive — it will. The question is whether it can reclaim the cultural esteem it once commanded. The answer lies not in another collab or celebrity face, but in what made the Swoosh iconic to begin with: authenticity, performance, and an unwavering belief in athletes.

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Can Nike reclaim its cultural credibility?