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According to Euromonitor International, Nike’s share of the global athletic footwear market fell to 22.9% in 2025, losing about 3 percentage points year-over-year. This is the third consecutive year of decline, indicating a steady erosion of the brand’s position amid increasing competition, writes Reuters.
One of the main beneficiaries of market redistribution is becoming Adidas. The company not only grew its share to 12.2%, but also reinforced its image as a technology leader after a record-breaking marathon result with its new ultra-lightweight running shoes. This reinforced the perception of Adidas as a more innovative player in the performance footwear segment.
In parallel, investor pressure is also growing. According to S&P Global Market Intelligence, the proportion of Nike shares taken in by shorts had reached 4.67% by early May, compared to 0.41% at the time of Hill’s appointment. For the market, this signals growing skepticism about the speed and effectiveness of the company’s transformation.
Additional pressure is created by competition from next-generation brands, including On Running and Deckers (owned by Hoka), which continue to take share away from classic Nike models like the Dunk and Air Jordan.
Despite new product launches, including the Vomero 18 running models and the revamped Alphafly, investors see progress as insufficient. In Morningstar’s assessment, Nike’s problems remain systemic, from inventory management to adapting its product line to new demand trends.
The situation is exacerbated by pressure on margins: the company’s operating margins have fallen below 6%, and the share of discounted goods remains high – about 37% of the assortment is sold at discounts, which reduces profitability.
Nike shares are trading at their lowest level since 2014, reflecting market doubts about the company’s recovery and ability to regain industry dominance.
