Nike, Inc. - Ordinary Shares - Class B

FY26 performance: flat revenue, margin expansion driven by tariff benefit (but underlying weaker) - Revenue: Flat on a reported basis (down 2% currency-neutral) for the full year. - Q4 revenue: -1% reported / -4% currency-neutral. - Gross margin: 42.9% full-year (+20 bps YoY); Q4 gross margin 49.2% (+890 bps YoY)—massively boosted by a one-time IEPAA incremental tariff recovery benefit of $986M in Q4 (and a 210 bps full-year benefit). - Underlying (ex-tariff) gross margin: Q4 would have been ~40.2% (instead of 49.2%); EPS would have been $0.20 in Q4 (instead of reported $0.72). - EPS: $2.10 diluted FY26 (-3% YoY); ex-tariff EPS would have been $1.58.

Demand picture: performance sports improving, but Sportswear/Jordan streetwear still pressured - Performance momentum: Continued strength with performance growing mid-single digits in FY26 and positive YOY retail comps in running/training/global football. - Running standout: 5 consecutive quarters of double-digit growth in Nike Running and ~$1B added to the running business; +5 points of running market share in statement footwear across Western Europe & North America. - Sportswear & Jordan weakness: Management explicitly called out ongoing sell-through challenges in Nike Sportswear and Jordan streetwear, driving current discounting and weaker future order books. - Macro pressure: “More complex” environment—added pressure on traffic and discretionary spending globally, weighing on sportswear more than performance.

Operations & strategy: “Win Now” + sport offense; integrated marketplace improvements - Win Now progress: Structural improvements across culture, product innovation, brand strength, and consumer service; moved ~8,000 teammates into vertical sport teams under the “sport offense” operating model. - Integrated marketplace (wholesale + Nike Direct): - Wholesale revenue FY26 +4% (led by double-digit North America growth). - Wholesale physical refresh: 15,000+ wholesale spaces refreshed. - Nike Direct: Management emphasized less discounting and premiumization; 150+ stores elevated with sport-led experiences. - Digital discounting reduced: “Discounting less on Nike Digital”; also plan to elevate ~50% of Nike Direct owned fleet by end of FY27 (time needed to see full impact). - Product innovation pipeline: Expected “first time across all sports” Nike Mind innovation to show in Spring 27; multiple new tech/launches highlighted (e.g., running/football innovations).