New York, New York
— October 3, 2025

When I worked at Amazon, one of the core principles Jeff Bezos instilled across the company was called working backwards. The idea was simple but powerful: start with the customer and build the product from there. You don’t force something onto the market — you talk to customers, find out what they want, and then design around that.

It’s a principle that helped Amazon scale to what it is today, and it’s also something I pay close attention to whenever a major brand starts to lose — or regain — market share.

This quarter, Nike caught my attention for doing exactly that.

A Quarter Worth Watching

Nike just reported its latest quarterly earnings, and the results show early signs that their “work backwards” mindset might be making a difference. The company reported $11.72 billion in revenue, about 6.5% above Wall Street’s expectations of $11 billion. Earnings per share came in at $0.49 versus $0.27 expected, another strong beat.

What stood out most was Nike’s running business, which surged 20% during the quarter. That’s a big number — and it wasn’t by accident. According to CEO Elliot Hill, the company has been laser-focused on understanding what runners actually want from their shoes and apparel again. After losing share to competitors like On Running and Hoka, Nike is now leaning heavily into customer feedback and athlete insights to build better-performing products.

In other words, they’re working backwards.

The “Win-Now” and “Sport Offense” Strategies

Nike’s comeback plan has two big pillars right now: Win-Now and Sport Offense.

• Win-Now is about identifying immediate opportunities to re-energize categories like running and training — areas where Nike used to dominate but has recently been outpaced by smaller, more specialized brands.
• Sport Offense, a newer initiative, takes this a step further. It focuses on doubling down on Nike’s sports DNA — prioritizing performance and competition over lifestyle and fashion.

This shift might sound subtle, but it’s actually a major repositioning. For the past several years, Nike has leaned heavily on “lifestyle” products — sneakers and apparel worn more for fashion than for sport. That worked well in the 2010s, when the athleisure boom was in full swing. But the market has changed.

Consumers, especially younger ones, are gravitating back toward performance-based products that feel more authentic and technical. Nike’s new strategy recognizes that and is restructuring its internal teams to become more agile — meaning different divisions can adapt to their sport’s unique growth stage in the “win-now, come-back” cycle.

Key Highlights from the Quarter

Nike’s renewed focus seems to be working in several key areas:

• Running: Up 20%, a sign that the “back to performance” message is resonating.
• North America: The strongest performing region, boosted by localized marketing and product launches.
• Wholesale channels: Partnerships with major retailers — including a return to Amazon — are paying off as Nike expands its reach again.
• Collaborations: The partnership with Kim Kardashian’s SKIMS is proving to be a hit, bridging sport and culture in a way few brands can pull off.
• Major events: Nike is positioning itself for big global moments, including the 2026 World Cup, where brand visibility will be sky-high.

The Challenges Still Ahead

That said, Nike’s not out of the woods. There are still several key risks that investors should be watching:

• China: Sales were down 10%, and the recovery there will take time. Consumer sentiment is still uneven, and local competition is strong.
• Retail stores: Foot traffic is sluggish, and Nike’s pivot to “sport-first” retail experiences will take time (and investment) to fully play out.
• Tariffs: This one’s huge — previously reported at $1 billion, tariffs are now expected to cost Nike $1.5 billion annually.
• Stock performance: Despite the recent post-earnings pop (up about 5%), shares are still down 11% year-over-year, while the Dow is up 11% in the same period.

In other words, this recovery story is still in progress — not complete.

Wall Street’s Take

Morgan Stanley weighed in with a cautiously optimistic note, suggesting Nike could be a buy-low opportunity if management can execute on three fronts:

1. Stabilize sales across key categories.
2. Relaunch new and exciting products that reignite consumer demand.
3. Recapture buzz among younger consumers who’ve drifted toward newer, more niche brands.

If those pieces fall into place, Nike could see meaningful upside. But if consumer demand softens further or tariffs continue to weigh on margins, the turnaround could take longer — or be weaker — than expected.

The Takeaway

At Wall Street Game Notes, we love stories like this because they mix strategy, innovation, and discipline — the things that often separate short-term rebounds from true turnarounds.

Nike’s quarter shows that they’re beginning to refocus on their strengths and rebuild from the core. They’re not chasing hype — they’re getting back to the fundamentals that made them great in the first place.

That’s exactly what “working backwards” is about — and if they stay disciplined, this could mark the start of Nike’s next growth cycle.

We’ll be watching closely heading into Q4 and the 2026 World Cup cycle to see how this strategy evolves.

Be good.