Nike closed 11 stores across the United States in July, including a location at the Santana Row mall in San Jose, California. The closures affected stores in several states, including Texas, New Jersey, Illinois, North Carolina, Georgia, Florida, Missouri, Maryland, and Kentucky.
The retailer's departure from Santana Row was described by Federal Realty, the mall operator, as "not a decision specific to this market or property" but rather part of a broader strategic shift. Despite this closure, California still has the most Nike locations nationwide, with 39 stores remaining.
These store closures come as Nike has faced a sales slump. In the fourth fiscal quarter of 2026, sales in Nike stores were down 7%, and Converse revenue decreased by 32%. Nike Direct revenue fell by 9%, and Nike Digital experienced a 12% decline.
In April of this year, Nike announced significant global operational changes, which included laying off approximately 1,400 employees, primarily in the technology sector. These adjustments were aimed at optimizing the company's supply chain, modernizing technology, and creating a more efficient operational structure.
Nike President and CEO Elliot Hill acknowledged the company's performance challenges in a June earnings call, stating, "We know we’re not living up to our full potential."