Financial Data and Key Metrics Changes - Revenues for Q1 2026 were up 1% on a reported basis and down 1% on a currency-neutral basis [20] - Gross margins declined 320 basis points to 42.2% due to higher wholesale discounts, increased product costs, and channel mix headwinds [21] - Earnings per share was $0.49 [22] - Inventory decreased 2% versus the prior year, indicating progress towards a healthier marketplace [23] Business Line Data and Key Metrics Changes - Nike Direct was down 5%, with Nike Digital declining 12%, while wholesale grew 5% [21] - The running business grew over 20% this quarter, showcasing strong consumer response to new innovations [10] - Sportswear business continues to decline, with a 30% drop in classic footwear franchises [24][15] Market Data and Key Metrics Changes - North America revenue grew 4%, with wholesale up 11% [23] - Greater China revenue declined 10%, with Nike Digital down 27% [26] - EMEA revenue grew 1%, with Nike Digital down 13% [25] Company Strategy and Development Direction - The company is focusing on a "sport offense" strategy to align its brands (Nike, Jordan, Converse) into more nimble teams by sport [6] - There is a commitment to improving the marketplace through innovative product offerings and emotional storytelling [19] - The company aims to enhance its digital presence while reducing reliance on classic franchises [18] Management's Comments on Operating Environment and Future Outlook - Management acknowledges a cautious consumer environment and tariff uncertainties impacting business recovery [19] - There is confidence in the win-now actions and the potential for growth in North America, despite challenges in Greater China [34] - The company expects Q2 revenues to be down low single digits, with gross margins declining due to new tariffs [32] Other Important Information - The company has activated 12 sport takeover moments in the past 10 months to connect athlete performances with commercial assortments [14] - New partnerships, such as with Skims, are aimed at expanding product offerings and reaching new consumers [12] Q&A Session Summary Question: Insights on the spring order book and holiday book context - Management noted that the spring order book is positive, reflecting growth in North America and EMEA, offsetting headwinds in Greater China [41][46] Question: Update on September trading and consumer demand - Management confirmed that Q1 performance was not influenced by pull forwards, with wholesale growth contributing to the results [51][54] Question: Early wins in North America and running growth - The company highlighted a 20% growth in running and positive signals from wholesale partners as indicators of success [58][59] Question: Traffic headwinds in Nike Digital - Management acknowledged that the decline in organic traffic is primarily due to strategic reductions in promotions and repositioning efforts [63][64] Question: Strategies for Greater China and store refresh costs - The company is focused on innovative products and local athlete activations to drive growth in China, with ongoing investments in the marketplace [66][69]

Financial Data and Key Metrics Changes - Revenues increased by 1% on a reported basis but decreased by 1% on a currency-neutral basis [20] - Gross margins declined by 320 basis points to 42.2% due to higher wholesale discounts, increased product costs, and channel mix headwinds [21] - Earnings per share was reported at $0.49 [22] - Inventory decreased by 2% compared to the prior year [23] Business Line Data and Key Metrics Changes - Nike Direct declined by 5%, with Nike Digital down 12% and Nike stores down 1% [21] - Wholesale grew by 5% [21] - Running business grew over 20% this quarter, indicating strong consumer response [10] - Sportswear business continues to decline, with a 30% drop in classic footwear franchises [24][15] Market Data and Key Metrics Changes - North America revenue grew by 4%, with wholesale up 11% [23] - Greater China revenue declined by 10%, with Nike Digital down 27% [26][27] - EMEA revenue grew by 1%, with Nike Digital down 13% [25] - APLA revenue grew by 1%, with Nike Digital down 8% [27] Company Strategy and Development Direction - The company is focusing on a "sport offense" strategy to align its brands (Nike, Jordan, Converse) into more nimble teams by sport [6] - The strategy aims to enhance consumer insights and drive innovation in storytelling [6] - The company is committed to improving its position in Greater China despite facing structural challenges [17] - Plans to refresh retail environments and improve seasonal sell-through trends are underway [27] Management's Comments on Operating Environment and Future Outlook - Management acknowledges a cautious consumer environment and tariff uncertainties impacting business recovery [19] - The company is optimistic about the potential for growth in China, emphasizing the importance of sport and innovative products [17] - Future revenue guidance for Q2 indicates a low single-digit decline, with expectations for gross margins to decrease by 300 to 375 basis points [32] Other Important Information - The company is experiencing a significant cost headwind from new tariffs, estimated at approximately $1.5 billion annually [30] - The strategic decision to reduce reliance on classic franchises and pull back on promotions is aimed at long-term brand health [18] Q&A Session Summary Question: Insights on the spring order book and medium-term margin levels - Management highlighted that the spring order book is positive, reflecting growth in North America and a commitment to returning to double-digit margins over time [41][46] Question: Update on September trading and consumer demand - Management noted that the environment is dynamic, with good sell-throughs for new product launches, but emphasized the need to focus on inspiring through sport [51][52] Question: Traffic headwinds in Nike Digital and milestones for profitable growth - Management acknowledged that organic traffic is down due to strategic reductions in promotions, but emphasized the importance of elevating the entire marketplace [63][64] Question: Strategies for turning around the Greater China digital business - Management expressed confidence in the long-term opportunity in China, focusing on innovative products and better storytelling to drive growth [66][67]

Financial Data and Key Metrics Changes - For Q4, revenues decreased by 12% on a reported basis and 11% on a currency-neutral basis [30] - Nike Direct revenues fell by 14%, with Nike Digital declining by 26% and Nike Stores increasing by 2% [30] - Gross margins declined by 440 basis points to 40.3% due to higher wholesale discounts and supply chain cost deleverage [30] - Earnings per share was $0.14, with full-year revenue down 10% on a reported basis [31] Business Line Data and Key Metrics Changes - In running, overall growth was high single digits, driven by the Bovero 18, which became a $100 million franchise [21] - Women's basketball business expanded over 50% this fiscal year, highlighted by the successful launch of Asia Wilson's signature collection [22] - Sportswear saw continued strength through products like P6000 and Vomero 5, while classic footwear franchises experienced significant declines [22][49] Market Data and Key Metrics Changes - North America Q4 revenue declined by 11%, with Nike Direct down 14% and wholesale down 8% [33] - EMEA Q4 revenue declined by 10%, with Nike Direct down 19% and wholesale down 4% [35] - Greater China Q4 revenue declined by 20%, with significant challenges in traffic and inventory management [38] Company Strategy and Development Direction - The company is focusing on a "sport offense" strategy, organizing teams by sport to drive innovation and consumer engagement [13][64] - Plans to clean up the marketplace and reposition Nike Digital as a full-price model are underway, with expectations for a healthier inventory by the end of H1 FY26 [45][50] - A new partnership with Amazon aims to expand distribution and enhance brand presence in the digital marketplace [19][96] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that Q4 results were not up to Nike's standards but expressed optimism about the impact of the WinNow actions [8][28] - The company expects headwinds to revenue and gross margin to moderate moving forward, with a clear path to recovery anticipated [29][47] - Management emphasized the importance of inspiring and innovating for consumers, aiming for sustainable growth [26][51] Other Important Information - The company is facing new tariffs that are expected to increase costs by approximately $1 billion, with plans to mitigate this impact over time [46] - Inventory remains elevated but is being managed down, with a focus on exiting H1 FY26 in a healthy position [32][50] Q&A Session Summary Question: Can you elaborate on the accelerated actions under your sport offense realignment? - The company is organizing into sport-obsessed teams to drive innovative product flow across all brands, focusing on performance and sportswear [64][65] Question: What is the expected cadence of revenues this year? - Revenue is expected to be down mid-single digits in Q1, reflecting ongoing challenges with classic footwear franchises and inventory liquidation [72][73] Question: How is the cleanup of the marketplace progressing? - The company remains on track for a healthy marketplace by the end of H1 FY26, with significant progress in managing classic footwear franchises [78] Question: What is the impact of tariffs on Q1? - The first quarter will see a larger impact from tariffs, but the company is confident in its ability to mitigate these costs over time [80] Question: Can you discuss the competitive environment in China? - The company is working to refresh the monobrand marketplace in China, which will take time due to unique market characteristics [40][104]

Financial Data and Key Metrics Changes - For Q4, revenues decreased by 12% on a reported basis and 11% on a currency-neutral basis [28] - Gross margins declined by 440 basis points to 40.3% due to higher wholesale discounts and supply chain cost deleverage [28] - Earnings per share was $0.14, with full-year revenue down 10% on a reported basis [29] Business Line Data and Key Metrics Changes - Nike Direct revenues were down 14%, with Nike Digital declining 26% and Nike Stores increasing by 2% [28] - In North America, Q4 revenue declined 11%, with Nike Direct down 14% and wholesale down 8% [31] - In EMEA, Q4 revenue declined 10%, with Nike Direct down 19% and wholesale down 4% [33] - Greater China saw a 20% revenue decline, with Nike Direct down 15% and wholesale down 24% [35] Market Data and Key Metrics Changes - North America made progress in cleaning up the marketplace, with a focus on repositioning Nike Digital as a full-price model [31] - EMEA demonstrated growth in key performance dimensions, with women's sportswear footwear returning to growth [34] - APLA experienced a 3% revenue decline, with mixed results across countries [38] Company Strategy and Development Direction - The company is implementing "WinNow" actions to reposition its brands and business for future growth, focusing on sport and innovation [26][27] - A new partnership with Amazon will feature a select assortment of footwear and apparel, aimed at expanding distribution [17] - The company is reorganizing into sport-focused teams to drive deeper relationships with athletes and enhance product innovation [12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that Q4 results were not up to Nike's standards but expressed optimism about future improvements [7] - The company expects headwinds to revenue and gross margin to begin to moderate, with a clear path to recovery ahead [22][44] - Management emphasized the importance of inspiring and innovating for consumers, with a focus on returning to sustainable growth [25] Other Important Information - The company is facing new tariffs that are expected to increase costs by approximately $1 billion, with plans to mitigate this impact over time [42][43] - Inventory remains elevated but is being managed down, with a goal to exit the first half of fiscal 2026 in a healthy position [30][47] Q&A Session Summary Question: Can you elaborate on the accelerated actions under your sport offense realignment? - The company is organizing into sport-obsessed teams to drive a relentless flow of innovative products across all brands, focusing on performance and sportswear [61][62] Question: What is the expected impact of tariffs in Q1? - The first quarter will see a larger impact from tariffs, but the company is confident in its ability to mitigate these over time as actions are implemented [74][77] Question: Are you expecting gross margin pressures to abate sequentially? - Margins are expected to remain under pressure in the first half of fiscal 2026, but moderation is anticipated in the second half [79][80] Question: Can you discuss the timeline for recovery in the China marketplace? - The company believes in the long-term opportunity in China and is focused on inspiring consumers, although recovery will take time due to unique market characteristics [102]