In Brief
- Divestiture of RTFKT: On December 17, 2025, Nike sold its digital products subsidiary RTFKT, accentuating a strategic emphasis on its core sports and apparel business.
- Undisclosed Sale Details: The buyer and the financial specifics of the transaction were not revealed.
- Converse Challenges and Legal Woes: As Nike faces a 30% decline in Converse revenue and ongoing litigation concerning its NFT practices, the company shifts focus back to traditional product lines.
In a significant shift of business strategy, Nike has divested its digital products arm, RTFKT, as confirmed on December 17, 2025. This move comes amid a broader realignment towards Nike’s foundational sporting goods operations. The decision follows statements made by CEO Elliott Hill in late 2024, detailing a pivot towards amplifying the core sports offerings and enhancing wholesale partnerships.
Despite reporting a marginal 1% increase in Nike’s overall revenue, achieving $12.4 billion in the quarter ending November 30, 2025, the company observed a sharp 30% revenue downturn in its Converse brand during the same period. This backdrop of fluctuating financial health illustrates the motivations behind shedding the digital collectibles subsidiary.
Continued Legal Challenges
The separation from RTFKT does not mark the end of challenges for Nike in the digital sphere. The company faces ongoing legal hurdles, as highlighted by a class-action lawsuit filed on April 25, 2025. The litigation, hosted in Brooklyn federal court, claims damages above $5 million, stemming from the marketing practices of Nike’s NFTs and other digital products. This case, Cheema v. Nike Inc, emphasizes the lingering complexities and risks associated with digital assets and blockchain technology.
Cultural Impact of RTFKT
Under Nike’s stewardship, RTFKT branched beyond mere digital goods sales into an influential entity within the collectibles culture and virtual economic systems prevalent in gaming. Initially acquired to spearhead innovative digital storytelling, the sale of RTFKT could reshape this niche market, depending on the strategies of its new owners.
Looking Ahead
With the divestiture of RTFKT finalized and the public announcement made on January 7, 2026, the industry watches keenly to see how the new proprietors will influence the evolving dynamics of digital collectibles. Meanwhile, the proceedings of the ongoing lawsuit will likely cast a long shadow, underscoring the profound and persistent implications of Nike’s foray into the challenging terrain of NFTs and digital marketing.