Nike has posted a 10.4 per cent sales decline for the first quarter of FY25, but the results were in line with management’s expectations of a slow market.

The company’s revenue for the quarter ended August 31 went down to $11.6 billion, with direct-to-consumer sales down 13 per cent and wholesale sales down 8 per cent.

On the bottom line, the company’s net income decreased 28 per cent to $1.1 billion.

According to GlobalData MD Neil Saunders, the sales dip has set Nike on the back foot at the start of the new fiscal year, but it was not unexpected since the firm had already flagged unfavorable market conditions.

Saunders agreed the weaker consumer economy has resulted in shoppers spending less on sneakers and apparel. “However, Nike has done itself no favors with a lack of focus and oomph in a market where far more effort and exertion is needed to hold onto sales,” he added.

In addition, smaller rival brands have successfully connected with consumers with their  creativity and inventiveness, in a way that Nike has failed to do, the analyst stated.

Saunders believes the company has identified many of its problems but is not likely to come up with quick solutions.

“The company is too big and cumbersome, and the issues too deeply engrained, to enact a quick turnaround. This leaves Nike facing a year of poor performance with only a promise of better things to come.”

Last month, the company announced the departure of its president and CEO John Donahoe, as well as the return of long-time veteran Elliott Hill. According to the analyst, there is a sense that this is the right decision, but the company will remain in a bit of a hiatus until Hill takes up his new post later this month.

The company has not provided its full-year outlook due to the ongoing CEO transition.