Nike raises marketing spend 5% to $1.3bn while sales fall 4%

Nike marketing spend rose 5% to $1.3 billion in the three months to 31 August. Nike calls this line demand creation. It covers advertising, marketing and sponsorship. Over the same quarter revenue fell 4% to $11.2 billion, the company reported on 1 October.

The increase reverses the previous quarter, when Nike cut marketing by 4%, Marketing Week noted. Nike said the extra money went into brand marketing around big sports moments.

Nike’s own apps and shops lost 8% of sales

Nike Direct, which covers its own stores and apps, fell 8% to $4.1 billion. Digital sales dropped 13%. Wholesale held up better and slipped 1% to $6.8 billion. Sales in China fell 22%. Converse revenue fell 28% to $263 million. The brand recently apologised for its Chuck 70 ad. Net income was down 2% at $712 million.

Operating overhead went the other way. It fell 6% to $2.7 billion. Nike is spending less on running the company and more on reaching buyers.

Elliott Hill’s Pace plan cuts $2.5 billion over five years

Chief executive Elliott Hill said Nike has “reignited” its marketing. He also launched a savings plan called Pace. It is meant to cut $2.5 billion in costs over five years, including jobs. By 2028 Nike will merge its four regions into three: Americas, Asia Pacific and Greater China, and EMEA.

Hill said the money will go to the “areas most critical to winning”. He named product, brand storytelling, consumer connection and sport. Nike calls its plan Sport Offense. It puts big sports events first. This summer that meant the 2026 FIFA World Cup.

Nike’s running and football lines grew while the group shrank

Nike said its performance lines grew at a high single-digit rate. They include football, running, training, basketball, tennis and golf. Rivals are pushing into the same space. Swiss brand On signed Kylian Mbappé after he left Nike. Hill warned that at Nike’s size, change “takes time”.

In money terms, Nike now puts about 12 cents of every sales dollar into demand creation. A year earlier it was closer to 11 cents. For clubs, leagues and media owners, Nike is a bigger buyer than it was a year ago.