Nike Ramps Up Marketing Before World Cup While Tariffs and Rivals Weigh

Nike (NKE, Financials) is ramping up marketing as it prepares for a crucial year marked by the World Cup and ongoing competitive and tariff pressures.

The company increased its marketing spend to $1.63 billion in the year ended May, up 9% from the prior year. Analysts expect selling and marketing expenses to top $5 billion in 2026, when the U.S., Canada and Mexico host the tournament. Nike sponsors five of the top 10 FIFA-ranked national teams, including Brazil, France and England.

CEO Elliott Hill is steering a turnaround effort after several sluggish quarters in which Nike lost share to rivals such as On, Deckers' Hoka, and Lululemon. Demand in China remains uneven, and tariffs on goods from Vietnam, China and Indonesia could add about $1 billion in costs.

Revenue for the August quarter is expected to fall 5% year over year, with margins narrowing by 3.7 percentage points, according to LSEG. Nike has leaned on discounts to clear inventory and launched NikeSKIMS, a women's athleisure partnership with Kim Kardashian's label.

Analysts say regaining relevance among serious athletes is critical as the $183 billion global athletic footwear market grows toward a projected $258 billion by 2030. Investors will focus on Tuesday's earnings call for signs of progress in balancing wholesale and direct-to-consumer channels and in capitalizing on next year's World Cup.