NIKE, Inc.

Headline results (FY26 + Q4) & what drove them - Q4 revenue: -1% reported / -4% currency-neutral YoY. NIKE Direct -9% (Digital -12%, stores -7%). Wholesale +1%. - Full-year revenue: flat reported / -2% currency-neutral YoY. - Gross margin (Q4): 49.2% up +890 bps YoY, but this was heavily distorted by an unplanned one-time IEEPA tariff recovery benefit of ~$986M. Without the benefit: Q4 gross margin would have been ~40.2%. - EPS (Q4): $0.72 reported; $0.20 excluding the tariff benefit. Full-year EPS: $2.10 (-3% YoY); $1.58 excluding the benefit. - Surprising/important: the tariff recovery was probable and resulted in a large positive earnings impact, plus cash collection progress (>$300M collected by quarter-end).

Business momentum: performance up, Sportswear/Jordan weak (and why) - Performance business strengthened: grew mid-single digits for FY26; Q4 performance momentum continued (Running/Training/Global Football positive). - Running strength: 5 consecutive quarters of double-digit growth; added ~$1B to the Running business; +5 share points in Western Europe & North America (statement footwear). - Weakness remains concentrated: NIKE Sportswear and Jordan Streetwear still negative, with challenged sell-through affecting discounting and future order books. - Key negative point: management attributes weakness to a more complex macro environment (pressure on traffic and discretionary spending) and softer consumer demand—especially visible in retail sales trends as the quarter progressed.

Guidance / forecasts: near-term earnings flat, revenue down, margins improving - Near-term earnings outlook: reiterate expectation that earnings are “flattish” over the 3-quarter window Q4 FY26 through Q2 FY27, excluding tariff recovery. - Revenue forecast: expected down low-to-mid single digits (composition matters). Q2 expected to decelerate sequentially from Q1 due to unique comp/headwind factors (notably higher EMEA digital promotions in the prior-year period and North America wholesale timing anomalies). - Gross margin: expect expansion beginning earlier in Q1 (i.e., before the back-half cost benefits fully show through). - Q1 expectations (reported): revenue down low-to-mid single digits, no FX benefit, currency-neutral growth consistent with recent performance; gross margin slightly positive. - Tariffs risk remains: forecast assumes incremental tariff rates 10% through end of July, then 15% thereafter (ongoing cost headwind risk).