Nike’s CEO, Elliott Hill, says the company is making progress on its turnaround plan, but profitability will take time to return. Hill aims for mid-to-high single-digit revenue growth with strong margins, but acknowledges it’s a non-linear process that requires portfolio alignment. Investors seek clarity on Nike’s performance under Hill’s leadership.

Since becoming CEO, Hill has shifted Nike’s strategy away from direct sales to a focus on wholesalers and regaining shelf space. He believes the company’s emphasis on digital sales during the pandemic hurt its brand image, leading to changes in distribution channels to attract more consumers. Nike is also restructuring its business to focus on individual sports rather than lifestyle sales.

Under Donahoe’s leadership, Nike faced criticism for falling behind on innovation and losing market share. Hill’s restructuring aims to reignite innovation by focusing on the needs of different athletes, leading to better product offerings. Despite challenges like tariffs impacting gross margins, Nike is working with suppliers and implementing price increases to mitigate costs.

Nike is working to overcome challenges and return to profitable growth under CEO Elliott Hill’s leadership. The company’s focus on individual sports, innovation, and strategic partnerships aims to drive revenue and profit. Despite macroeconomic challenges, Nike is taking steps to offset tariff costs and maintain financial stability.

Read more at CNBC: Nike CEO interview Elliott Hill talks turnaround, NKE stock