Nike is making a push into the booming outdoor recreation market, set to launch a new trail running shoe on Monday in a move that will test whether it can transform a little-known sub-brand into a significant growth engine.

Nike spokesperson Jay Pavone Perla stated that the athletic apparel giant plans to debut a version of its Ultrafly trail running shoe at the Ultra-Trail du Mont-Blanc race starting Monday in France, with the shoe belonging to its outdoor sub-brand ACG.

This represents one of Nike's efforts to reposition ACG as a major player in the professional trail running shoe segment. More broadly, this move aligns with CEO Elliott Hill's strategy of refocusing the brand on core sports like running, as Nike's dominance faces challenges from smaller competitors.

Nike finds itself in catch-up mode in both the outdoor recreation sector and the Chinese market. The outdoor recreation market has surged since the pandemic, while Chinese consumers have shown significantly increased enthusiasm for outdoor activities like trail running. Analysts suggest that Nike's lagging performance in these two markets partially explains why its share of the global athletic apparel market has declined in recent years. Outdoor recreation encompasses a range of activities including hiking and camping.

Nike announced that sponsored athletes including Anthony Costales will compete wearing the shoe, called ACG Ultrafly, which is scheduled to launch in spring 2026. The similarly upgraded ACG brand Zegama trail running shoe will also be released later in 2025.

Morningstar analyst David Swartz noted that brands like Salomon and Hoka have "stood out and performed excellently in the trail running shoe sector," while "Nike needs to fight back."

Achieving this goal through ACG (short for All Conditions Gear) won't be easy. The division launched in 1989, initially focusing on hiking and cycling gear, but is now associated with "gorpcore," a trend that incorporates functional gear into fashion styling. Swartz mentioned that in Nike stores, ACG products typically occupy only one or two shelves, often "next to a picture of a man mountain climbing or something similar."

However, through the Chinese market and ACG brand, Nike may be positioning for a long-term strategy to expand business in that market. Last October, Nike established the ACG team as a sub-brand, with Greater China Vice President Dong Wei leading the division. In June, Hill stated that Nike's biggest opportunity in China is "from a brand perspective, to inspire and attract 1.3 billion consumers into the world of sports, athletic fashion, and fitness."

According to Euromonitor International data, outdoor apparel sales in China nearly doubled between 2019 and 2025, while outdoor footwear sales grew 65% during the same period. However, Nike has experienced double-digit sales declines in the Chinese market for each of the past three quarters.

"China remains a challenging market for Nike," Zacks Equity Research noted. The company faces intense competition from other retailers in China, while the country's own economic difficulties and high youth unemployment have dampened consumption.

Euromonitor data shows Nike's share of the global athletic apparel market has fallen from 29% in 2021 to 26%, as competitors like Hoka (the title sponsor of the Ultra-Trail du Mont-Blanc race) drive growth through trail running shoes. Swartz noted that Hoka's shoes were once a niche brand before going mainstream.

Jessica Ramirez, co-founder of retail consulting firm Consumer Collective, suggested that launching products at a Hoka-sponsored event could be Nike's attempt to steal the spotlight from competitors. Ramirez called this Nike's way of "showing its financial muscle" to smaller brands.