Nike, Inc. - Ordinary Shares - Class B

Financial Performance: NIKE reported a revenue decline of 8% on a reported basis and 9% on a currency-neutral basis for Q2 fiscal 2025. Notably, NIKE Direct revenue fell by 14%, with digital sales down 21%. The firm faces ongoing headwinds from franchise management actions, leading to a gross margin decline of 100 basis points to 43.6%.

Market Strategy Realignment: CEO Elliott Hill emphasized the need to return to a strategic focus on sport and athlete-centric decisions, aiming to reignite brand momentum and consumer engagement. Key actions include investing in product innovation, brand marketing, and rebuilding relationships with wholesale partners to drive both NIKE Direct and wholesale sales.

Inventory Management: NIKE's inventory levels are currently flat year-over-year but higher than desired due to recent sales trends. The company plans to aggressively reduce aged inventory, aligning supply with demand and ensuring marketplace capacity for new product assortments. This includes an increase in markdowns and promotional activities to clean up inventory in the near term.