In a televised interview with Bloomberg in Milan at the Winter Olympics, Nike President and CEO Elliott Hill hyped Nike’s rediscovered potential in the outdoor category through the relaunch of ACG (All Conditions Gear), eyeing major growth opportunities beyond the brand’s focus on trail running.

“There is a movement to getting outdoors, whether it’s in China or Europe or the United States,” said Hill. “We looked at the overall outdoor market and the opportunity that exists there, and there is some crossover, but it is an incremental opportunity from a branding, positioning and revenue perspective.”

Hill said that although ACG was known for its boots in the past, the relaunch is focused on trail because of Nike’s foundation and momentum in the running space. Nike reported that its running segment grew by more than 20 percent in its most recent quarter.

Hill added, “We decided to go after that through the lens of trail running, which is a point of strength for us where we can bring innovation to the market and newness and freshness. And we decided to do it with the ACG brand because there is already some awareness of it, and it has an attitude we think is new and fresh, bringing something different to the outdoor market. So, we’re really excited about what ACG is going to do for us long term.”

He also confirmed ACG plans to expand well beyond trail. Hill said, “No question. You will see us continue to invest in the ACG brand. It’s going to be around design, protection, attitude, and innovation. And you’ll see us extend beyond trail running moving forward.”

Hill said Nike’s renewed commitment to the outdoor category was signaled by its introduction last October of the Therma-Fit Air Milano Jacket, but Nike saw the Milano Cortina 2026 Winter Olympics as a platform to elevate buzz with a formal relaunch of ACG.

As part of the relaunch, Nike created an all-orange, heavily branded train, called the ACG Express, that transports people from central Milan to the Italian Alps to showcase the new ACG offerings on a trail run. Hill said, “We thought there was no better place to do it than here in Milan when the eyes of the world were watching, but also with the backdrop of the Alps and the Dolomites.”

Nike launched ACG in 1989 to mark its foray into outdoor apparel and footwear. Initially, it found success standing out for its more athletic performance features and brighter colors in the staid boot category.

In 1998, Nike spun ACG off into its own operating unit, and Gordon McFadden, previously of Helly-Hansen, was named president of Nike ACG. McFadden left Nike in early 2001, and the brand lost considerable momentum in the years that followed. In 2014, Nike rebranded Nike ACG to NikeLab ACG, focusing more on urban markets.

Romaine Bostick at Bloomberg remarked that ACG has been “through some fits and starts” over the years and questioned why there “hasn’t been that continuity” with ACG.

Hill responded that he is confident in the updated positioning of ACG, which he said is inspired by the “Wild Ones” mantra and features a strong commitment to athletes taking on new adventures. He said, “I think with anything, it comes down to positioning, and I’m really excited about where the team is going to take this brand. We’re going for the ‘Wild Ones.’ So you think about the outdoor world with a little bit of an attitude and a swagger with that element and approach around design and innovation.”

The ACG relaunch is supported by an expanded roster of outdoor athlete ambassadors, new partnerships with trail races and the opening of its first ACG Base Camp store in Beijing.

Hill was asked whether ACG, coming from a mainstream, traditionally sports-focused brand such as Nike, risks “alienating” the core outdoor enthusiasts it aims to reach. He said, “I think that’s a risk if we just showed up as the big bad Nike. But, I think, this team…that we’ve put on this, they live and breathe this space. So, they understand it deeply, and we’re trying to show up, without question, in the most authentic way from an athlete’s perspective.”

As an example, he pointed to the attention Nike gained after Caleb Olson last summer won Western States in one of the fastest times in the event’s history while wearing Nike’s Radical Airflow long-sleeve top (shown lead image) in over 100-degree temperatures. Hill said, “We’re going to come at it through the lens of innovation, design and an attitude that I think is new, fresh, and frankly, I believe, and we believe the outdoor consumer is ready for it.”

Hill also said Nike is up for the battle against well-established brands in the outdoor space. He said, “I think we’re always on the offense. We have a maxim that says, “On the Offense Always.” And so, the team’s approaching it from an offensive perspective, trying to bring a new, fresh perspective. And so far, the consumers are responding extremely well to the product.”

Nike’s Recovery Update
Hill also addressed Nike’s progress in its turnaround efforts. He highlighted the company’s renewed commitment to innovation and taking risks after overly relying on driving growth through iconic models, Air Force 1, Dunk and AJ1, in recent years

He confirmed that “Make Epic Sh**” has lately been adopted as a slogan for Nike’s innovation lab. He said, “That’s one of the mantras coming out of that building. And frankly, I love it. I love the irreverance of it. I like the attitude of it. I like the commitment around it. And I keep telling this team — run. Don’t ask permission. Don’t ask for forgiveness. And they’re bringing some really interesting things to the marketplace.”

He also believes the Sports Offense strategy, which segments each of Nike’s three brands — Nike, Jordan and Converse — by sport, is starting to pay dividends. Hill said Nike saw “some proof points” in its most recent fiscal second quarter ended November 30, including North America, its largest region, returning to growth, the running category returning to double-digit growth, and the wholesale channel returning to growth.

He credited Tom Peddie, general manager of North America, with helping restore relationships with Nike’s U.S. wholesale partners and reviving wholesale growth in Nike’s home country. He said of the wholesale growth, “I think there’s no question we’re having to pull a lot of our products forward to really drive that innovation and that newness and freshness. And I think we have an opportunity around depth that we’re still working through to ensure we have the depth to drive the revenue and profits they expect from us. And we are committed to doing that because ultimately when we’re driving growth and profitability for our retailers, that’s how we take market share.”

He said inventories of classics are in better shape, with Air Force One recently returning to growth. He was also bullish on the soccer category with three cleats and a major campaign planned around the upcoming World Cup. Hill said that similar to ACG’s relaunch positioning around the Winter Olympics, Nike will continue to look to take advantage of other “tentpole moments” like the World Cup.

“Sport moments are critically important to our brand and frankly, to the industry,” said Hill. “They’re tentpole moments where whether it’s a Winter Olympics, a World Cup, a Super Bowl or NBA All-Star Game, they’re really galvanizing moments for our teams internally to make certain we show up at our best and we use those moments to take the relationships that we have with the world’s greatest athletes and translate that into coveted, beautiful, innovative product only Nike can do. And so these are critical moments for our company and for our brands. And no question, they’re the moments that can help create a halo over the business side of the sport as well.”

Converse Seeks to Broaden Offerings
On Converse, Hill confirmed that Nike has no plans to sell the struggling brand despite suggestions on the Internet that Converse should be sold so the company can focus on reviving growth for its flagship Nike brand.

“I’ve heard the chatter, and I’ve received even some of the phone calls,” said Hill. “But we’re committed to the Converse brand. We see it as an opportunity to address a different consumer than the core Nike consumer or the core Jordan consumer. It’s a separate and distinct consumer, and it offers us a separate and distinct opportunity from a revenue and profitability perspective.”

He said Converse is undergoing a repositioning under new leadership after becoming too reliant on the Chuck Taylor franchise, with a focus on a broader offering and on sport. He said Shai Gilgeous-Alexander, the brand’s top ambassador and star of the Oklahoma Thunder, will play a big role in elevating Converse’s image.

Hill said, “I love what the team is doing in repositioning the Converse brand around the idea of creators. And there are creators, of course, in the world of culture, but they’re also creators in the games that we play. And in the case of basketball, there’s probably no more special creator than Shai Gilgeous, not only in the way that he plays on the court, but also in the way that he shows up from a style perspective and from a Converse perspective. I think we became very focused on the Chuck, and you’ll start to see us dimensionalize through basketball to through skate, then of course with the Jack Purcell, which is sitting out there as well.”

He also confirmed a Bloomberg report earlier this week that Converse was undergoing layoffs as part of a reorganization amid sales declines. In Nike’s recent fiscal second-quarter results, Converse revenues declined 30 percent.

Hill said, “It’s unfortunate, and I’m empathetic to some of those teammates. But yeah, we’re having to reposition where we put our resources as we move forward.”

Jordan to Move Beyond Streetwear
Hill likewise sees the Jordan brand benefiting from a broader approach, moving beyond its roots in streetwear to basketball, training, and other sports. He said the brand had a “really nice launch” in golf with Michael Jordan known for his interest in golf, but Hill also sees opportunities in baseball, another sport Jordan played, and football. Said Hill, “So we are pushing to dimensionalize the brand beyond just streetwear but also position it in sport and not just about footwear, but it’s also about apparel.”

Images courtesy Nike / Caleb Olson, Western States