Nike has reported a slight uplift in its first-quarter sales, which an analyst described as a “strong lap” in its ongoing reinvention race.

For the quarter ended August 31, the sportswear company saw revenues increase 1 per cent to $11.7 billion, compared to the 12 per cent decline in the prior year’s fourth quarter. 

Excluding favorable currency movements, revenues were down 1 per cent, which was still considerably better than the mid-single digit drop that was forecast.

According to GlobalData MD Neil Saunders, Nike has yet to break the tape in its “reinvention race”, but the first-quarter results count as a “strong lap”.

“True, the lap was run against very low expectations, so it’s not exactly a major victory. But even so, the performance will provide management with greater confidence to keep forging ahead,” he said.

The better performance was driven by mixed factors in terms of geography and division. By region, sales were up 4 per cent in North America and 6 per cent in EMEA, but down 9 per cent in Greater China and 6 per cent in Apac.

According to Saunders, traction is growing in North America, where Nike is seeing some success with its apparel lines. Europe also saw success in apparel, although the results were flattered by helpful exchange rates.

Meanwhile, in China, the brand has suffered from some anti-American sentiment, as well as a general slowdown in consumption and tougher competition from rival brands, the analyst continued. 

By category, apparel sales soared 9 per cent, sports equipment rose 4 per cent, and footwear fell 1 per cent. Total Nike brand revenue increased 2 per cent, while Converse plunged 27 per cent.

Saunders said the company’s sneakers business remains somewhat on the back foot. There has been a little progress in categories like running, but there is still some way to go before Nike has a strong lineup across the board and starts benefiting from greater technical innovation, he added.

On the bottom line, the company’s net income fell 31 per cent to $700 million. 

“All in all, we think Nike is making progress. But there is a lot more work to be done in resetting the brand at a macro level and to gain ground among different pockets and tribes of consumers that now form the sportswear market,” said Saunders.

“The good news is that 2026 will be big for sport. And Nike also has some big plays, like its partnership with Skims. The hope is that these things will give lift to management’s strategies.”