Nike, Inc. - Ordinary Shares - Class B

Q1 performance was “in line with expectations,” but below NIKE’s longer-term potential - Revenue: $11.2B, -4% reported / -5% currency-neutral YoY. - Profitability: Gross margin 42.8% (+60 bps YoY) (helped by supply chain cost management + FX tailwinds), partially offset by higher discounts/channel mix. - SG&A: -3% YoY (expense discipline while still investing in demand creation tied to World Cup). - EPS: $0.48, -2% YoY. - Balance sheet / capital returns: Net cash position, $8.4B cash & short-term investments; ~2x leverage. Returned ~$610M to shareholders via dividends.

The “good”: Sport Offense / Performance momentum is real (strong growth across key sports) - NIKE’s Performance portfolio delivered high single-digit growth in Q1 (benefited by World Cup). - Drivers cited: Running (up double digits, share gains), Global Football (strong double-digit growth in all geos), Training (globally led by EMEA), Basketball (up double digits in North America), Tennis and Golf (both up double digits). - Running innovation highlighted: nearly tripled share of the Max cushioning category over the last year; new footwear launches in multiple silos (e.g., Pegasus Plus 2, Alphafly 4, Swooshfly, NIKE Apex). - Women’s Basketball opportunity emphasized: Caitlin 1 launch described as a major scaling moment (launch in ~5,000 doors, supported by large campaign).

The “bad”: Sportswear, Jordan, and Greater China remain key headwinds - NIKE Sportswear revenue: down low double digits; contributors included: - Planned Dunk reduction ~50% in Q1 → ~$200M headwind. - Aged/higher-volume sportswear footwear sold through below expectations → impacted future wholesale order books and required inventory cleanup. - Lifestyle marketplace described as lacking energy/traffic; consumer cautious. - Jordan Brand: revenue declined mid-teens (Jordan = 13% of global business), with management planning to reduce oversupply by cutting volume/frequency of Jordan Retro—especially in North America in the near term—to restore scarcity and profitability. - Greater China: revenue -26% YoY. Plan includes “digital cleanup” (fewer, higher-quality experiences anchored in official flagships on Tmall/JD/Douyin + NIKE.com/app) and improving retail experience; near-term revenue/profit impact expected.