NIKE, Inc.

Progress on “Win Now” comeback (but near-term pressure continues): - CEO Elliott Hill said NIKE is still in the “middle innings,” but the health, quality, and foundation of the business is improving through deliberate brand/sport/geography/channel actions. - Key one-off headwind this quarter: NIKE removed “unhealthy” classic footwear inventory from the marketplace, creating about a ~5-point headwind to reported results (intentional to restore marketplace quality). - By end of calendar year, NIKE expects to complete Win Now actions, with less aged inventory and improved product flow and storytelling across the integrated marketplace.

Q3 headline performance: flat revenue, margin pressure, but improving profitability trends - Revenues: flat reported / down 3% currency-neutral YoY - Channel mix: NIKE Direct -7%, NIKE Digital -9%, NIKE stores -5%, Wholesale +1% - Gross margin: 40.2%, down 130 bps YoY, mainly from ~300 bps of higher tariffs in North America (tariff impact noted as transitory). - EPS: $0.35 - Inventory: down 1% YoY (units down mid single digits)

Cost reset / restructuring charge and what it implies for future earnings - NIKE recorded a $230M employee-related severance charge (Supply Chain + Technology; also includes Converse right-sizing). - CFO Matthew Friend attributed this to higher fixed-cost base built during the pandemic that weighed on EBIT as revenue declined. - Plan: reset to a more efficient/variable cost structure; benefits expected to begin in fiscal 2027 and build through fiscal 2028. - SG&A: up 2% reported, including severance; effective tax rate ~20%.