Nike is recasting its ACG (All Conditions Gear) line as an independent outdoor performance brand, according to a recent Jefferies research note. The company - with a market capitalization of $94.23 billion and trading at a P/E ratio of 37.08 - is expanding the ACG franchise with an explicit focus on trail running, hiking and exploration, moving Nike Trail products into the ACG portfolio.
Jefferies pointed to concrete product and retail steps that accompany the repositioning. On the product front the firm highlighted a number of performance-oriented items within the collection, including the ACG Ultrafly and Zegama footwear, alongside apparel such as the Radical AirFlow top and the Lava Loft jacket. On the retail and experiential side, Nike has opened an ACG Base Camp store in Beijing and is pursuing partnerships with trail races to reinforce the brand’s outdoor credentials.
The Jefferies note framed the ACG reboot as "a smart, potentially material move," arguing that the initiative targets a segment showing both participation and premiumization trends. At the same time the firm emphasized execution risks that will determine whether the relaunch translates into meaningful commercial gains. Jefferies advised that Nike must maintain distribution discipline, sustain a cadence of product innovation, and establish authenticity with core outdoor consumers to succeed in the space.
The ACG expansion arrives as Nike contends with near-term revenue challenges. The company recorded a 5.03% decline in revenue over the last twelve months, though forecasts cited in the note suggest a modest 1% growth in the current fiscal year. Jefferies’ analysis sits alongside third-party market-size projections referenced in the research: the global outdoor sportswear market is expected to grow from about $59.3 billion in 2024 to $83.5 billion by 2030, a compound annual growth rate of 5.9%. That pace would outstrip the broader sportswear market’s forecasted 4.5% CAGR and increase outdoor’s share of total sportswear by roughly 120 basis points to 15.8% by 2030.
Investment-analysis commentary accompanying the research further indicated that Nike is slightly undervalued on a Fair Value basis in InvestingPro’s assessment, suggesting potential upside if strategic initiatives such as the ACG expansion gain traction. InvestingPro also provides additional investor guidance on the company, including 12 further tips that cover topics such as dividend consistency and financial health metrics, plus a Pro Research Report on the company.
Alongside the ACG relaunch, Jefferies and market-watchers are tracking a series of corporate developments at Nike. Converse, a brand owned by Nike Inc., is undergoing strategic changes that have included job cuts and a shift toward remote work for employees; Converse CEO Aaron Cain has said the restructuring will involve the creation of new roles and team adjustments. Separately, Nike is the subject of a U.S. investigation into alleged discrimination against white employees, with the agency charged with enforcing workplace discrimination laws scrutinizing the company’s diversity policies.
Brokerage coverage remains mixed but supportive in places: BTIG has reiterated a Buy rating on Nike, retaining a $100 price target and pointing to the company’s strategic emphasis on North America as a lever to address competitive pressures. At the leadership level, Nike announced a number of regional management changes intended to strengthen oversight and respond to regional challenges: César Garcia will take on the role of VP/GM for Europe, the Middle East and Africa, replacing Carl Grebert who is retiring; Cathy Sparks will become VP/GM for Greater China, succeeding Angela Dong; and Cristin "Crissy" Campbell will serve as Interim VP/GM for Asia Pacific and Latin America.
Taken together, the ACG reboot and the broader corporate moves reflect Nike’s effort to re-allocate resources and sharpen its competitive positioning amid a mixed near-term operating backdrop. Jefferies’ endorsement of the ACG strategy emphasizes product and retail execution as the key determinants of whether the initiative will materially lift the company’s performance.