Is NIKE's 20% Running Growth the Blueprint for Its Comeback?

NIKE Inc.’s NKE recent 20% year-over-year growth in its running category has emerged as a defining signal in its turnaround story. After a period marked by slowing digital sales and margin pressures, the company’s renewed focus on performance innovation, particularly in running, is beginning to pay off. The “Win Now” actions, centered on product innovation and athlete-focused storytelling, are showing results.

Revamped running models like the Vomero, Pegasus and Structure, powered by NIKE’s advanced technologies such as ZoomX and ReactX, have driven momentum and consumer excitement, validating the company’s “Sport Offense” strategy that puts sport and innovation back at the center.

The running division’s resurgence is more than a bright spot; it is a playbook for NIKE’s broader recovery. Running was the first to fully adopt the “Sport Offense” model, using small, sport-focused teams that quickly turned consumer insights into market-ready products. This helped the company strengthen partnerships with key retailers and revive demand in North America. By blending innovation with emotional storytelling and sharper retail execution, NIKE has reconnected with its core consumers and restored confidence among wholesale partners.

NIKE’s comeback is still in progress. While the running business offers a clear model, challenges remain in sportswear, digital channels and China, where sales have lagged. The real test for the company will be scaling its running-led momentum across other categories, from basketball to global football, while restoring profitability under rising tariff costs and a cautious consumer environment. Still, with running showing what is possible under its new playbook, NIKE appears to be regaining its competitive stride, one mile at a time.

NKE’s Competition in the Global Arena

adidas AG ADDYY and lululemon athletica inc. LULU are the key companies competing with NIKE in the global market.

adidas remains NIKE’s closest global rival, leveraging its deep heritage in sportswear and performance innovation. The company has been focusing on rebuilding brand heat after recent challenges by investing in core franchises like Samba, Gazelle and Superstar, which have seen a strong lifestyle-driven revival. adidas is also streamlining its operations under the “Own the Game” strategy, emphasizing direct-to-consumer growth, digital acceleration and sustainability. Its performance categories — running, football and training — continue to benefit from strong product pipelines and partnerships with global athletes and teams.

lululemon has emerged as a formidable competitor to NIKE, particularly in the premium athletic and lifestyle segment. Known for its technical apparel and deep community connection, the brand continues to expand beyond its yoga roots into menswear, footwear and international markets. lululemon’s “Power of Three ×2” strategy focuses on doubling men’s and digital revenues while driving global expansion, especially in China. The company’s innovation-led approach, coupled with its loyal customer base and focus on holistic wellness, has helped it sustain double-digit growth and strong margins.

NKE’s Price Performance, Valuation & Estimates

Shares of NIKE have lost 10.9% year to date compared with the industry’s decline of 15.4%.

From a valuation standpoint, NKE trades at a forward price-to-earnings ratio of 33.84X compared with the industry’s average of 27.49X.

The Zacks Consensus Estimate for NKE’s fiscal 2026 earnings implies a year-over-year decline of 23.6%, while that for fiscal 2027 indicates growth of 50.3%.

NIKE stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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