Nike’s new CEO, Elliott Hill, has outlined a bold shift in the company’s strategy, moving away from performance marketing and promotional discounts to refocus on brand building. With sports as its guiding principle, Nike aims to regain its cultural relevance and reclaim its position as a premium, full-price brand.

In a significant move, Nike is reducing its reliance on promotional activity and paid traffic, prioritizing long-term sports partnerships. Recent deals with the NFL, NBA, WNBA, Brazil Football Confederation, and FC Barcelona reflect the brand’s commitment to reinforcing its connection with professional sports. Additionally, Nike is ramping up its presence in key markets, aiming to engage more deeply with everyday athletes and influencers.

The strategic pivot comes in response to slumping sales and challenges in retaining cultural relevance. Nike’s Q2 2025 earnings revealed an 8% year-over-year revenue decline, with its Nike Direct digital business down 13%. The brand’s struggles in categories like running, where competitors such as Hoka have gained traction, underscore the urgency of this reset.

Hill emphasized that the shift from performance marketing to brand marketing is essential for reigniting the company’s legacy of innovation and bold creativity. “We’re starting to shift dollars from performance marketing to brand marketing,” Hill said, highlighting the importance of investing in sports as a source of product innovation and distinction.

To support this transition, Nike launched the celebrated “Winning Isn’t for Everyone” campaign during the Summer Olympics. This initiative, created with Wieden + Kennedy, conveyed the raw determination of elite athletes and resonated widely, earning Ad Age’s Campaign of the Year recognition.

The transition away from discounts and performance-driven tactics is part of a broader effort to position Nike as a full-price, premium brand. CFO Matthew Friend noted the necessity of liquidating existing inventory while scaling back paid traffic to realign with this vision.

Hill remains optimistic about Nike’s future, citing its powerful mission statement: “to bring inspiration and innovation to every athlete in the world.” By recentering on sports and doubling down on brand-building initiatives, Nike aims to reenergize its identity and chart a new course toward sustained growth.

For more details on Nike’s Q2 2025 earnings and strategy, visit Marketing Dive.