The news: Nike’s turnaround appears uneven, reflecting international weakness and internal missteps.

• Net sales of $10.97 billion in the fiscal Q4 ended May 31 beat expectations for $10.86 billion, but still represented a 1% YoY decline.
• Earnings per share (EPS) of 72 cents far exceeded expectations for 12 cents, largely because of expected tariff refunds.

As in previous quarters, renewed momentum in North America was offset by weaker sales in Europe, the Middle East, and Africa (EMEA) and Greater China, underscoring Nike’s ongoing struggles to reengage consumers in important international markets.

• North America revenues rose 3% YoY, with stronger footwear and apparel demand offsetting weaker equipment sales.
• Greater China sales fell 12% YoY, with particularly steep declines in footwear (down 13%) and apparel (down 10%).
• EMEA sales declined 1% YoY.

The challenges: As a cultural force, Nike’s position as one of the world’s strongest consumer brands cannot be denied. Its powerful ad following the New York Knicks’ NBA Championship win, star-studded World Cup short film, and “Why Do It” campaign show its ability to use storytelling to gain relevance.

But its ability to turn that attention into sales has been hurt by its own execution. For example, its Paris Olympics campaign featured products that didn’t hit shelves until the following year. Lately, the company appears to have underestimated demand for US men’s World Cup jerseys, resulting in limited inventory at key wholesale partners like Dick’s Sporting Goods and the official US Soccer store—a near-repeat of merchandising failures following the US men’s hockey team gold medal win at the 2026 Winter Olympics.

China remains another big challenge for Nike. Revenues in the Greater China region are down 12.5% from 2020 as the company struggles to deliver products and messaging that resonate with local consumers. Additionally, recent media reports suggest the company could cut ties with wholesale distributors beginning January 1, according to a BNP Paribas analysis—a surprising move given all the retailer is doing to undo the damage wrought by its D2C shift a few years ago.

Winning back Chinese consumers won’t be easy. Like other Western retailers, Nike can no longer coast on its reputation; consumers have higher standards and a plethora of local and international brands to choose from. But the company’s purported decision to reduce access to partners with greater insight into the needs and preferences of local shoppers could cause it to fall further behind brands like Anta and Li Ning and potentially deepen its slide in the country.

Implications for retail: Nike’s struggle to regain momentum shows that a strong brand alone isn’t enough to drive sales. While the company has done well to grab consumers’ attention during major sporting moments, it has often faltered due to its own merchandising missteps, pointing to the need for closer alignment between its marketing and product teams.

That holds true for brands beyond Nike. Events like the World Cup can drive attention and engagement, but retailers have to be prepared to meet that demand.