Team USA will wear the Air Milano jacket at the Winter Olympics.
Nike has also introduced the Nike Mind, a shoe and slider featuring cushioning nodes that press on sensors in the feet. The company claims this improves focus when worn. Manchester City striker Erling Haaland and WNBA star A’ja Wilson have been using the shoe, which took nearly ten years to develop, to prepare for games. Nike states it has scientific evidence to support these claims.
Matthew Nurse, Nike’s chief science officer, explains, “Using tools like EEG, we’ve measured changes in brain activity related to focus and presence. This is the first time we’ve been able to demonstrate and prove that footwear design can affect how the mind functions.”
However, Donaghu, who has been with Nike since the late 80s and worked with co-founder Bill Bowerman, believes this is only the beginning. “We’re like kids in a candy store here,” he says. “There’s something truly magical happening. We focus on getting it right and worry about profits later—a lesson we learned from Bill Bowerman. Phil Knight, Nike’s other co-founder, cared about building a solvent company, but Bowerman didn’t care about money; he just wanted to help athletes excel. I appreciate having both perspectives guiding us.”
He adds that part of Nike’s success stems from its “innovation kitchen,” a collaborative, non-hierarchical space where about 30 employees from various departments brainstorm ideas. “We’re the ones who seek answers to what others only guess at,” Donaghu notes. “If we don’t have a mind scientist, we’ll hire one for the kitchen. That’s how we advance.”
Nike invited the Guardian to its Beaverton headquarters to showcase new innovations and demonstrate its commitment to change. During the conversation, Hill was asked about Allyson Felix, a top U.S. Olympian who revealed in 2019 that Nike threatened to reduce her pay by 70% if motherhood impacted her performance. Nike later revised its policy to protect athletes’ pay and bonuses for 18 months around pregnancy, inspiring other brands to follow.
The discussion also touched on Alberto Salazar, former coach of the Nike Oregon Project, who received a four-year doping suspension in 2019 and a lifetime ban for misconduct.
Hill acknowledges that all companies make mistakes and that Nike has had its share without always admitting them. When asked if things will be different under his leadership, he replies, “Today’s consumers expect companies to be vulnerable, authentic, and upfront. As the leader, I commit to being honest about our successes and our failures—it’s inevitable in business. What matters most is how we respond when we get it wrong.”
On the topic of Donald Trump’s tariffs, which are projected to cost Nike around $1.5 billion this year, Hill is more cautious. He mentions that Nike is leveraging its diverse global supply chain to manage the impact but hopes it won’t harm the world of sports, emphasizing that the effects extend beyond Nike.Helmet manufacturers, baseball bats, equipment—all these costs eventually get passed down to the consumer. Sports are already becoming less accessible, and I worry this will make it even harder for the average American. That’s what makes me nervous.
Nike’s new president and CEO, Elliot Hill. Before my trip to the U.S., I spoke with a few former Nike employees who had good things to say about Hill. One even claimed, a bit surprisingly, that when he was appointed last October, people literally cried with relief.
Clearly, changes were needed to improve the company’s performance. For years, analysts had warned that Nike was relying too heavily on re-releasing older favorites—like Jordans, Dunks, and Air Forces—with new color variations. It was like a classic ’80s radio station playing the same hits long after the excitement had faded.
At the same time, Nike focused intensely on direct-to-consumer sales, which meant fewer of its products were available in stores. This created an opening for brands like Hoka and ON to gain ground. When a new wave of runners, often women in their 20s and 30s, started joining run clubs after the pandemic, many turned to these newer brands first.
Since returning to Nike, Hill has prioritized rebuilding relationships with retailers. One of its biggest customers, JD Sports, recently said Nike is “doing all the right things” to boost demand.
Hill has also reorganized the company, creating separate departments for each sport—like running, football, and basketball—rather than grouping products by men’s, women’s, and kids’ categories, as his predecessor Donahoe did. That old structure had caused bottlenecks in innovation. Now, Hill says, teams can react faster and bring products to market more quickly.
Nike now employs a mind scientist at the LeBron James Innovation Centre. The company is determined to put athletes “at the center of everything we do.”
Hill admits there’s still a lot of work ahead. But recent earnings reports show signs of improvement, with several well-received releases helping the running division grow by over 20% in the last quarter.
Football is a major passion for Hill, who was raised by a single mother in a blue-collar Texas neighborhood. In fact, he loved the game so much that after retiring in 2020, he made a small investment in the Italian Serie B team Venezia—though he gave it up when he returned to Nike last year.
Hill also recalls being “completely blasted” by some of his European colleagues back in 1998 when he suggested they should do more to promote women’s football. “They told me, ‘No one cares about women’s football,'” he says. “Now, almost 30 years later, it’s phenomenal.”
During our conversation, he reflected on this summer’s Women’s Euros. In the final, he sat with Football Association officials as England trailed Spain 1-0 and looked exhausted. “I was yelling at them, ‘We’ve got to believe!'” he says. “You can see it with the English—they’ve had their hearts broken so many times in big moments, never winning a major tournament outside their own country. So I started shouting, ‘Come on, everyone, let’s go! We’ve got this!'”
“And then, of course, when we won—the joy! That’s the beauty of sport,” Hill adds. He wants Nike to learn from the Lionesses’ resilience. “It’s those moments that define an athlete, a team, a country, and in our case, a company. And it didn’t hurt that Spain was an Adidas team.”Before I leave Oregon, I speak with Tony Bignell, a key figure behind Eliud Kipchoge’s Breaking2 marathon project and Faith Kipyegon’s Breaking4 mile attempt, as well as the revolutionary super shoes that powered them. Now Nike’s chief innovation officer, he insists the company is recovering its momentum despite recent “dramas.”
“Sometimes it’s challenging to cater to both elite athletes and everyday people like my mom, who just wants to walk the dog around the block,” he says. “But under Elliot, the handbrake is off, and we feel free. It’s amazing how one person can make such a difference.”
“I wish more people understood the individuals in this building because they’re not corporate, whatever you might hear about Nike,” he adds. “It’s just a good, human place to be.” Ironically, a company that excels at storytelling has often struggled to convey this.
To an outsider, it seems like there are multiple versions of Nike: the sports brand driven to win at all costs, sometimes pushing too far; the global multinational with 80,000 employees, closely monitoring its stock price; the company striving to stay perpetually cool; and the everyday, highly intelligent scientists, engineers, and other staff who are happy to chat, praise competitors, and speak openly about the company’s state.
However, Hill maintains that at its core, Nike remains the company founded in 1972 by Phil Knight—whose campus in Beaverton has just been renamed in his honor—and Bill Bowerman. It’s the same brand that rose to prominence by elevating athletes like Steve Prefontaine and Michael Jordan, fueled by innovations that began when Knight started making shoes with his waffle iron and selling them from his Winnebago.
“Those two started this company with a handshake,” says Hill. “They each invested $500. Their purpose was simple: we exist to serve the athlete and keep them at the center of everything we do.”
Over five decades, much has changed, but one enduring formula remains: Create Epic Shit, Make Athletes Better, keep consumers in love with the Swoosh, and reap the rewards.
Frequently Asked Questions
Of course Here is a list of FAQs about Nikes strategy to revive its sales momentum designed to be clear concise and helpful for a wide audience
BeginnerLevel Questions
1 Whats the main reason Nike needs to revive its sales
Nike was facing slower sales growth especially in key markets like North America and China due to increased competition and changing consumer shopping habits
2 What is Nikes main strategy to boost sales
Their core strategy is a Consumer Direct Acceleration plan This means they are focusing more on selling directly to you through their own stores website and apps while also streamlining their relationships with other retail partners
3 How is Nike planning to get more customers
They are heavily investing in innovation creating more personalized shopping experiences and strengthening their most popular product lines like Jordan and running shoes
4 Is Nike cutting back on anything
Yes To simplify their business they are reducing the number of different shoe styles they make and cutting back on the amount of general merchandise they offer
5 What does streamlining their wholesale business mean
It means Nike is being more selective about which thirdparty stores they partner with They are focusing on partners who provide a premium experience rather than just selling to anyone
Advanced Practical Questions
6 How is technology like apps and NFTs part of this strategy
Nike sees its apps as crucial They use them for exclusive drops member rewards and building a community Acquiring RTFKT allows them to create digital sneakers and experiences engaging with a new younger audience in the metaverse
7 What role does sustainability play in this revival plan
Sustainability is a key innovation pillar By focusing on recycled materials and more efficient manufacturing they aim to reduce costs appeal to environmentally conscious consumers and futureproof their brand
8 Can you give an example of a recent product that embodies this new strategy
The development of the Nike Alphafly 3 running shoe is a great example It uses cuttingedge technology to target serious athletes is sold primarily through Nikes own channels and reinforces their leadership in performance innovation
