After a bruising year of sliding sales, bloated inventories, and tariff headaches, Nike (NKE) is trying to reset its game plan by leaning on an old ally.
The Swoosh has rekindled its partnership with Foot Locker in what looks like a small but telling step in its broader wholesale comeback.
Nike shoes are back on the front wall of Foot Locker’s men’s section, a so-called “pole position” spot that puts them ahead of rivals like Adidas and New Balance.
According to JPMorgan analyst Matthew Boss, it’s the first time in two years Nike has reclaimed this prime real estate.
The timing isn’t accidental. The renewed visibility comes as Nike and Foot Locker mend fences after Dick’s Sporting Goods closed its $2.4 billion acquisition of the sneaker chain in May.
Nike had previously scaled back its footprint under Foot Locker’s old leadership, opting to chase higher margins by pushing customers to buy directly through its own stores and apps.
Now with new CEO Elliott Hill at the helm, Nike appears ready to reverse course. The company is prioritizing a wholesale revival strategy that Schaeffer’s Investment Research says could be critical to its turnaround.
Nike is back in the game at $FL! Its sneakers are once again front & center after years of taking a backseat. A big win for $NKE and part of its wholesale comeback strategy under new leadership. 🔥👟 pic.twitter.com/PCON1Hs0c7
undefined Schaeffer's Investment Research (@schaeffers) August 18, 2025
For Foot Locker, which runs more than 2,400 stores worldwide, front-wall placement is gold: it’s not just about visibility, but also the consumer psychology that often translates into higher sales.
But not everyone is sold. Analysts at TD Cowen argue that Dick’s faces greater risks now that it's tasked with fixing Foot Locker’s lagging business while also managing Nike’s wholesale ambitions.
An iconic brand under pressure
Nike’s slump is partly self-inflicted. Its aggressive pivot to a direct-to-consumer model looked smart on paper — more margin, more control — but in practice, shoppers still wanted choice and familiarity.
By 2021, Nike had cut ties with roughly half its wholesale partners, slashing its distribution reach just as demand softened.
The fallout has been ugly. In its latest fiscal fourth quarter, Nike’s revenue dropped 12% year-over-year to $11.1 billion, while profit collapsed 86%. That's a gut-punch from weaker demand and the cost of clearing excess inventory.
Management has warned the current quarter won’t bring relief, guiding for another mid-single-digit sales decline in line with LSEG forecasts.
Tariffs are another drag. CFO Matt Friend estimates duties will cost Nike $1 billion this fiscal year. While some of that will be offset with supply-chain tweaks, the rest is coming through price hikes.
Nike has shed about 6% over the past year, hovering near $75. Over the last five years, it's down by almost a third.
For a brand built on dominance, Nike’s new strategy isn’t just about reclaiming the front wall at Foot Locker. It’s about proving it can still run the floor.
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