Core Insights - Nike is valued at $106.3 billion and is undergoing a significant transformation to address sluggish growth and brand fatigue, focusing on a new "Sport Offense" strategy aimed at performance innovation [1][4] - The company's stock has decreased by 5.3% year-to-date, underperforming the S&P 500 Index which has gained 14.6% [2] Financial Performance - In Q1 of fiscal 2026, Nike's revenues increased by 1% year-over-year, with Nike Direct declining by 5% due to a 12% drop in Nike Digital and a 1% decrease in stores, while wholesale revenues rose by 5% [5] - Gross margins fell to 42.2% due to rising wholesale and factory store discounts, increased product expenses, and an unfavorable channel mix [5] - Earnings per share were reported at $0.49, a 30% decrease year-over-year, while inventory decreased by 2% compared to the previous year [6] Market Performance - North America experienced a 4% revenue increase, while EMEA saw a 1% growth; however, Greater China faced a 10% revenue decline [7] - The company is facing new challenges from reciprocal tariffs, with anticipated annualized costs rising to $1.5 billion, up from a previous forecast of $1 billion [7]