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Nike's ( NKE ) ACG brand targets trail running market

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China's outdoor sports market is growing fast

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Nike ( NKE ) faces competition from brands like Salomon and Hoka

By Nicholas P. Brown

NEW YORK, Aug 22 (Reuters) - Nike's ( NKE ) push into

the booming outdoor recreation market - which will kick off on

Monday with the launch of a new trail running shoe - will test

whether it can turn a little-known sub-brand into a meaningful

growth engine.

The sportswear giant plans to unveil a version of its

Ultrafly trail running shoe - branded under its outdoor

sub-brand, ACG - at the Ultra-Trail du Mont-Blanc, an

ultramarathon in France that begins on Monday, Nike ( NKE ) spokesman

Jay Paavonpera said.

It is part of Nike's ( NKE ) push to reposition ACG as a serious

player in performance trail running. More broadly, the move is

in line with CEO Elliott Hill's strategy to refocus the Nike

brand around core sports like running at a time when its

dominance is being challenged by smaller rivals.

Nike ( NKE ) is playing catch-up in both outdoor recreation, which

has surged since the pandemic, and in China, where the populace

has taken to outdoor activities like trail running in a big way.

The company's lagging performance in both markets goes some way

toward explaining why its share of the global sportswear market

has ebbed in recent years, analysts said. Outdoor recreation

includes a range of activities including hiking and camping.

Nike ( NKE )-sponsored runners like Anthony Costales will race in

the shoe, dubbed the ACG Ultrafly, which is set to hit shelves

in spring 2026, Nike ( NKE ) said. A similarly rebooted, ACG-branded

version of the Zegama trail runner will launch later in 2025.

Brands like Salomon and Hoka "have broken out and done well"

in trail running, said Morningstar analyst David Swartz, and

"Nike ( NKE ) needs to fight back."

Doing it with ACG - short for All Conditions Gear - will not

be easy. The unit, which debuted in 1989 with a focus on hiking

and biking, is now associated with "gorpcore," a fashion trend

that incorporates functional gear into stylish wardrobes. It is

usually relegated to a shelf or two at Nike ( NKE ) stores, often next

to "a picture of a guy walking up a mountain, or something like

that," said Swartz.

But with China and ACG, Nike ( NKE ) may be playing a long game as

it plans to expand its businesses across that market. It

established its ACG team as a sub-brand in October and put

Angela Dong, vice president for all of Greater China, in charge

of the unit. In June, Hill said its biggest opportunity in China

is "from a brand perspective, to inspire and invite the 1.3

billion consumers into the world of sport, lifestyle sport and

to fitness."

Sales of outdoor apparel nearly doubled in China between

2019 and 2025, with outdoor footwear ticking up 65% over the

same period, according to Euromonitor International data. Nike ( NKE ),

though, has logged double-digit sales declines in China in each

of the last three quarters.

"China has remained a challenging market for Nike ( NKE )," wrote Zacks

Equity Research. The company has faced heavy competition in

China from other retailers, and the nation's own economic

struggles and high youth unemployment have inhibited spending.

Nike's ( NKE ) share of the global sportswear market has fallen to

26% from 29% in 2021, according to Euromonitor, as competitors

like Hoka, the title sponsor of the Ultra-Trail du Mont-Blanc,

use trail running to fuel growth. That company's shoes were also

once a niche brand before going mainstream, Swartz said.

Launching at a Hoka-sponsored event may be Nike's ( NKE ) attempt to

steal some of its rival's thunder, said Jessica Ramirez,

co-founder of retail industry consultancy the Consumer

Collective. It is a way for Nike ( NKE ) to "flex its financial muscle"

over smaller brands, Ramirez said.