According to reports, Nike is warning that shoppers around the world are becoming more careful with their money, and the company says that pressure is starting to affect sales of some of its biggest footwear and apparel categories.
During its latest earnings call, Nike executives said consumers are pulling back on non essential purchases as higher costs and economic uncertainty continue to affect spending habits. CFO Matt Friend told analysts that the company saw retail sales slow as the quarter moved forward, with Nike Sportswear taking one of the biggest hits.
“After a stronger start in March, especially in North America, by mid April, we began to see a deceleration in retail sales trends,” Friend said. “Our consumer is under pressure around the world.”
Nike CEO Elliott Hill shared a similar view, pointing to Nike Sportswear and Jordan Streetwear as areas where the company is facing challenges. Both categories have seen weaker demand, leading to more discounts and changes to future product orders.
Nike now expects revenue to decline in the low to mid single digits during the first two quarters of fiscal 2027. The company said the updated forecast reflects slower customer demand and weaker sales at retail locations.
For many sneaker buyers, this means fewer impulse purchases and more hesitation before spending money on new shoes. Consumers who may have picked up multiple pairs each year are now taking more time before buying, looking for discounts, or sticking with what they already own.
Nike’s fourth quarter revenue reached $11 billion, down 1 percent compared to the same period last year. Full year revenue remained mostly flat at $46.4 billion, showing that the company is dealing with a slower period after years of strong growth.
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Nike Direct, which includes its own stores and online sales, was one of the weaker parts of the business. Direct revenue dropped 7 percent during the quarter, while Nike Digital sales declined 12 percent.
The company also reported weaker results from Greater China, where revenue dropped 12 percent for the quarter. Europe, the Middle East and Africa also saw declines when adjusted for currency changes.
Not every part of Nike’s business is struggling. Running footwear has continued to perform well, with the company reporting another quarter of strong growth in that category. North America also remained one of Nike’s stronger regions, helped by better relationships with retail partners.
However, Nike executives said the overall shopping environment remains difficult. Consumers are focusing more on essentials and being more selective with purchases that are considered optional.
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Industry analyst Matt Powell said the slowdown is not only affecting Nike. He pointed to broader issues across the footwear market, including inflation concerns, higher everyday expenses, and a lack of fresh products that make shoppers feel the need to buy immediately.
Nike is responding by adjusting inventory, reducing future product orders, and being more careful with discounts. The company also plans to share more details about its next growth strategy during an upcoming investor event.
For sneaker fans and skaters who follow Nike’s footwear business, the message is simple: people are still buying shoes, but many are thinking harder before spending money on a new pair. Nike’s latest results show that even one of the biggest names in footwear is feeling the impact of shoppers becoming more cautious.