Nike's market share of athletic footwear, estimated at around 30%, puts it well ahead of competitors like Adidas (ADDYY -1.94%) and Asics (ASCCF -3.77%). With the global sportswear company working to play a bigger role in fast-growing areas such as China, Nike still has a lot of potential for growth.
Recently, Nike has struggled with upstart competition, such as On Holding (ONON -2.46%) and Deckers Outdoor's (DECK -3.08%) Hoka brand. The company also seems to have leaned too heavily on digital and direct channels, overlooking its established wholesale relationships with key partners like Foot Locker, now owned by Dick's Sporting Goods.
Nike has built a strong digital ecosystem around apps such as SNKRS and the Nike Training Club. However, its revenue declined in fiscal 2025 and is expected to be nearly flat in fiscal 2026.
Despite those challenges, it's hard to bet against a company that has led its industry for so many decades. It may take time for the turnaround strategy under new CEO Elliott Hill to play out, but Nike should recover from its recent woes.