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Item 2. Management’s Discussion and Analysis

2025-10-01 compared with 2025-04-03 · 276 added, 345 removed, 275 unchanged (69% of the section changed)

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NIKE Direct operations which are comprised of both NIKE-owned retail stores and sales through our digital platforms (also referred to as "NIKE Brand Digital") and to wholesale accounts, which include a mix of independent distributors, licensees and sales representatives in nearly all countries around the world.

Our goal is to deliver value to our shareholders by building a profitable global portfolio of branded footwear, apparel, equipment and accessories businesses.

Our goal is to deliver value to our shareholders by building a profitable global portfolio of branded footwear, apparel, equipment and accessories.

Our strategy is to achieve sustainable, profitable long-term revenue growth by leading with sport, creating innovative, "must-have" products, building deep personal consumer connections with our brands and delivering compelling consumer experiences through digital platforms and at retail.

QUARTERLY FINANCIAL HIGHLIGHTS

Revenues for the third quarter of fiscal 2025 were $11.3 billion compared to $12.4 billion for the third quarter of fiscal 2024

• NIKE Direct revenues were $4.7 billion for the third quarter of fiscal 2025 compared to $5.4 billion for the third quarter of fiscal 2024, and represented approximately 43% of total NIKE Brand revenues

• NIKE Brand wholesale revenues were $6.2 billion for the third quarter of fiscal 2025 compared to $6.6 billion for the third quarter of fiscal 2024

• Gross margin for the third quarter of fiscal 2025 decreased 330 basis points to 41.5%

• Inventories as of February 28, 2025, were $7.5 billion, flat compared to May 31, 2024

• We returned approximately $1.1 billion to our shareholders in the third quarter of fiscal 2025 through dividends and share repurchases

Our results for the third quarter of fiscal 2025 reflected a decrease in traffic across NIKE Direct and our actions to reduce supply of certain footwear products in the marketplace through increased markdowns, higher sales-related reserves and discounts which negatively impacted our Revenues and gross margin.

Revenues for the first quarter of fiscal 2026 were $11.7 billion compared to $11.6 billion for the first quarter of fiscal 2025.

• NIKE Direct revenues were $4.5 billion for the first quarter of fiscal 2026 compared to $4.7 billion for the first quarter of fiscal 2025, primarily driven by a decrease in traffic in NIKE Brand Digital.

NIKE Direct revenues represented approximately 40% of total NIKE Brand revenues.

• NIKE Brand wholesale revenues were $6.8 billion for the first quarter of fiscal 2026 compared to $6.4 billion for the first quarter of fiscal 2025, primarily driven by an increase in units, partially offset by an increase in discounts.

• Gross margin for the first quarter of fiscal 2026 decreased 320 basis points to 42.2% due to higher discounts with our wholesale partners, higher discounts in our NIKE Brand factory stores, an increase in product costs including new tariffs and changes in channel mix.

• Inventories as of August 31, 2025, were $8.1 billion, an increase of 8% compared to May 31, 2025, primarily driven by product mix and an increase in units.

• We returned approximately $0.7 billion to our shareholders in the first quarter of fiscal 2026 through dividends and share repurchases.

FACTORS IMPACTING OUR BUSINESS

We are navigating through several external factors that create uncertainty and volatility in the operating environment, including, but not limited to, geopolitical dynamics, new tariffs, tax regulation and fluctuating foreign exchange rates.

We are navigating through several external factors that create uncertainty and volatility in the operating environment, including, but not limited to, geopolitical dynamics, tax regulation, fluctuating foreign currency exchange rates and evolving tariff policies.

As a result of new tariffs, we expect a gross incremental cost of approximately $1.5 billion on an annualized basis.

We are taking actions to mitigate the impact of new tariffs;

however for fiscal 2026, we expect a negative impact on gross margin.

We will continue to monitor changes to the import and export policies of the U.S.

and other countries that could require us to change the way in which we do business.

These factors, and any changes to these factors, among others, could have a material adverse impact on consumer behavior and on our future Revenues and overall profitability.

For a discussion of these factors and other risks, refer to Risk Factors in Item 1A of Part 1 within our Annual Report on Form 10-K for the fiscal year ended May 31, 2025 (the "Annual Report").

Despite these factors, we are focused on building a complete product portfolio, creating stories to inspire and emotionally connect with consumers, and elevating and growing the entire marketplace as we continue to take actions across the following areas:

Despite these factors, we are focused on driving distinction within key sports, building a complete product portfolio, creating stories to inspire and emotionally connect with consumers, and elevating and growing the entire marketplace as we continue to take actions across the following areas:

• Product Management:

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This includes liquidating inventory through increased markdowns across NIKE Direct, and higher sales returns and discounts with our wholesale partners to reduce inventory and create capacity for new product.

We are also making investments to elevate the presentation of our brands in physical retail.

• Brand Management:

Increasing investment in demand creation, including brand marketing and sports marketing, to support key product launches and sports moments.

Over the next several quarters, we expect these actions will have a negative impact on our Revenues and gross margin as well as higher Demand creation expense.

Our reportable operating segments are at different stages of progress against these actions and therefore, the timing of financial impacts have varied and we expect will continue to vary by segment.

These actions have had, and in the future will have, a negative impact on our Revenues and overall profitability.

However, we believe these actions will reignite brand momentum and reposition our business to drive long-term shareholder value.

USE OF NON-GAAP FINANCIAL MEASURES

Throughout this Quarterly Report on Form 10-Q, we discuss non-GAAP financial measures, which should be considered in addition to, and not in lieu of, the financial measures calculated and presented in accordance with U.S.

References to these measures should not be considered in isolation or as a substitute for other financial measures calculated and presented in accordance with U.S.

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Total NIKE, Inc.

EBIT for the three and nine months ended February 28, 2025 and February 29, 2024 are as follows:

THREE MONTHS ENDED NINE MONTHS ENDED

(Dollars in millions) FEBRUARY 28, 2025 FEBRUARY 29, 2024 FEBRUARY 28, 2025 FEBRUARY 29, 2024

EBIT for the three months ended August 31, 2025 and August 31, 2024 are as follows:

THREE MONTHS ENDED AUGUST 31,

(Dollars in millions) 2025 2024

Net income $ 727 $ 1,051

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EARNINGS BEFORE INTEREST AND TAXES

$ 904 $ 1,264

Calculated as total NIKE, Inc.

EBIT divided by total NIKE, Inc.

Our EBIT margin calculation for the three and nine months ended February 28, 2025 and February 29, 2024 are as follows:

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(Dollars in millions) FEBRUARY 28, 2025 FEBRUARY 29, 2024 FEBRUARY 28, 2025 FEBRUARY 29, 2024

Our EBIT margin calculations for the three months ended August 31, 2025 and August 31, 2024 are as follows:

THREE MONTHS ENDED AUGUST 31,

(Dollars in millions) 2025 2024

Earnings before interest and taxes $ 904 $ 1,264

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Revenues $ 11,720 $ 11,589

EBIT margin 7.3 % 10.9 % 9.9 % 12.6 %

Currency-neutral revenues:

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RESULTS OF OPERATIONS

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(Dollars in millions, except per share data) FEBRUARY 28, 2025 FEBRUARY 29, 2024 % CHANGE FEBRUARY 28, 2025 FEBRUARY 29, 2024 % CHANGE

THREE MONTHS ENDED AUGUST 31,

(Dollars in millions, except per share data) 2025 2024 % CHANGE

Revenues $ 11,720 $ 11,589 1 %

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CONSOLIDATED OPERATING RESULTS

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FEBRUARY 28, 2025 FEBRUARY 29, 2024 % CHANGE % CHANGE EXCLUDING CURRENCY CHANGES (1)

2025 2024 % CHANGE % CHANGE EXCLUDING CURRENCY CHANGES (1)

NIKE Brand Revenues by:

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TOTAL NIKE BRAND REVENUES

11,362 11,111 2 % 0 %

Converse 366 501 -27 % -28 %

Corporate (3)

(26) (14) — — (74) (19) — —

TOTAL NIKE, INC.

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(3) Corporate revenues primarily consist of foreign currency hedge gains and losses related to revenues generated by entities within the NIKE Brand geographic operating segments and Converse, but managed through our central foreign exchange risk management program.

THIRD QUARTER OF FISCAL 2025 COMPARED TO THIRD QUARTER OF FISCAL 2024

Revenues for the third quarter of fiscal 2025 were $11.3 billion compared to $12.4 billion for the third quarter of fiscal 2024.

FIRST QUARTER OF FISCAL 2026 COMPARED TO FIRST QUARTER OF FISCAL 2025

Revenues for the first quarter of fiscal 2026 were $11.7 billion compared to $11.6 billion for the first quarter of fiscal 2025.

On a currency-neutral basis, NIKE, Inc.

Revenues decreased 7%, primarily due to lower revenues in Greater China, Europe, Middle East & Africa ("EMEA") and North America, which each reduced NIKE, Inc.

Revenues decreased 1%, primarily due to lower revenues in Greater China and Converse, which reduced NIKE, Inc.

Revenues by approximately 2 and 1 percentage points, respectively.

• NIKE Brand revenues, which represented over 90% of NIKE, Inc.

Revenues, decreased 9% on a reported basis and 6% on a currency-neutral basis.

The decrease on a currency-neutral basis was due to lower revenues in the Jordan Brand, Men's, Kids' and Women's.

Higher revenues in North America increased NIKE, Inc.

Revenues by approximately 2 percentage points.

• NIKE Brand revenues increased 2% on a reported basis and were flat on a currency-neutral basis.

• NIKE Brand footwear revenues decreased 2% on a currency-neutral basis.

Unit sales of footwear decreased 8%, while lower average selling price ("ASP") per pair reduced footwear revenues by approximately 1 percentage point.

Lower ASP per pair was primarily due to higher discounts and changes in channel mix, partially offset by product mix.

• NIKE Brand apparel revenues decreased 1% on a currency-neutral basis.

Unit sales of apparel were flat, while lower ASP per unit reduced apparel revenues by approximately 1 percentage point.

Lower ASP per unit was primarily due to changes in channel mix and higher discounts, partially offset by product mix.

• NIKE Brand wholesale revenues decreased 7% on a reported basis and 4% on a currency-neutral basis.

The decrease on a currency-neutral basis was driven by lower revenues in Greater China, EMEA, Asia Pacific & Latin America ("APLA"), partially offset by an increase in North America.

• NIKE Direct revenues were $4.7 billion in the third quarter of fiscal 2025, compared to $5.4 billion for the third quarter of fiscal 2024.

NIKE Brand Digital sales were $2.5 billion for the third quarter of fiscal 2025 compared to $3.0 billion for the third quarter of fiscal 2024.

On a currency-neutral basis, NIKE Direct revenues decreased 10%, primarily due to NIKE Brand Digital sales declines of 15% and comparable store sales declines of 3% compared to the third quarter of fiscal 2024.

Unit sales of footwear increased 2%, while lower average selling price ("ASP") per pair reduced footwear revenues by approximately 4 percentage points.

Lower ASP per pair was primarily due to channel mix and higher discounts.

• NIKE Brand apparel revenues increased 7% on a currency-neutral basis.

Unit sales of apparel increased 10%, while lower ASP per unit reduced apparel revenues by approximately 3 percentage points.

Lower ASP per unit was primarily due to higher discounts and channel mix, partially offset by product mix.

• NIKE Brand wholesale revenues increased 7% on a reported basis and 5% on a currency-neutral basis.

The increase on a currency-neutral basis was driven by higher revenues in North America, Europe, Middle East & Africa ("EMEA") and Asia Pacific & Latin America ("APLA"), partially offset by a decrease in Greater China.

• NIKE Direct revenues were $4.5 billion in the first quarter of fiscal 2026, compared to $4.7 billion for the first quarter of fiscal 2025.

On a currency-neutral basis, NIKE Direct revenues decreased 5% due to declines in NIKE Brand Digital sales of 12% from $2.3 billion in first quarter of fiscal 2025 to $2.0 billion in the first quarter of fiscal 2026 and declines in NIKE stores sales of 1%.

Comparable store sales decreased 1%.

For additional information regarding comparable store sales, including the definition, see "Comparable Store Sales".

FIRST NINE MONTHS OF FISCAL 2025 COMPARED TO FIRST NINE MONTHS OF FISCAL 2024

Revenues were $35.2 billion for the first nine months of fiscal 2025 compared to $38.8 billion for the first nine months of fiscal 2024.

On a currency-neutral basis, NIKE, Inc.

Revenues decreased 8%, primarily due to lower revenues in North America, EMEA, Greater China and Converse which each reduced NIKE, Inc.

Revenues by 3, 3, 1 and 1 percentage points, respectively.

• NIKE Brand revenues, which represented over 90% of NIKE, Inc.

Revenues, decreased 9% on a reported basis and 8% on a currency-neutral basis.

The decrease on a currency-neutral basis was due to lower revenues in the Jordan Brand, Men's, Women's and Kids'.

• NIKE Brand footwear revenues decreased 10% on a currency-neutral basis.

Unit sales of footwear decreased 8%, while lower ASP per pair reduced footwear revenues by approximately 2 percentage points.

Lower ASP per pair was primarily due to higher discounts and changes in channel mix, partially offset by strategic pricing actions.

• NIKE Brand apparel revenues decreased 4% on a currency-neutral basis.

Unit sales of apparel decreased 5%, while higher ASP per unit contributed approximately 1 percentage point of apparel revenue growth.

Higher ASP per unit was primarily due to strategic pricing actions, partially offset by changes in channel mix.

• NIKE Brand wholesale revenues decreased 6% and 5% on a reported and currency-neutral basis, respectively.

The decrease on a currency-neutral basis was driven by lower revenues in EMEA, Greater China, North America, and APLA.

• NIKE Direct revenues were $14.4 billion for the first nine months of fiscal 2025, compared to $16.5 billion for the first nine months of fiscal 2024.

NIKE Brand Digital sales were $7.6 billion for the first nine months of fiscal 2025 compared to $9.4 billion for the first nine months of fiscal 2024.

On a currency-neutral basis, NIKE Direct revenues decreased 12%, primarily due to NIKE Brand Digital sales declines of 19% and comparable store sales declines of 2% compared to the first nine months of fiscal 2024.

THREE MONTHS ENDED NINE MONTHS ENDED

THREE MONTHS ENDED AUGUST 31,

(Dollars in millions)

FEBRUARY 28, 2025 FEBRUARY 29, 2024 % CHANGE FEBRUARY 28, 2025 FEBRUARY 29, 2024 % CHANGE

2025 2024 % CHANGE

Gross profit $ 4,943 $ 5,257 -6 %

Gross margin 41.5 % 44.8 % (330) bps 43.5 % 44.5 % (100) bps

THIRD QUARTER OF FISCAL 2025 COMPARED TO THIRD QUARTER OF FISCAL 2024

For the third quarter of fiscal 2025, our consolidated gross margin was 330 basis points lower than the prior year due to:

• Lower NIKE Brand ASP (decreasing gross margin approximately 150 basis points), primarily due to higher discounts and changes in channel mix;

• Higher other costs (decreasing gross margin approximately 90 basis points), in part due to higher inventory obsolescence reserves;

• Higher NIKE Brand product costs (decreasing gross margin approximately 70 basis points);

• Unfavorable changes in foreign currency exchange rates, net of hedges (decreasing gross margin approximately 30 basis points);

• Lower gross margin from Converse (decreasing gross margin approximately 20 basis points).

This was partially offset by:

• Restructuring charges in the prior year (increasing gross margin approximately 50 basis points).

FIRST NINE MONTHS OF FISCAL 2025 COMPARED TO FIRST NINE MONTHS OF FISCAL 2024

For the first nine months of fiscal 2025, our consolidated gross margin was 100 basis points lower than the prior year due to:

• Lower NIKE Brand ASP (decreasing gross margin approximately 140 basis points), primarily due to higher discounts and changes in channel mix, partially offset by benefits from strategic pricing actions;

• Higher other costs (decreasing gross margin approximately 70 basis points), in part due to higher inventory obsolescence reserves;

Gross margin 42.2 % 45.4 % -320 bps

FIRST QUARTER OF FISCAL 2026 COMPARED TO FIRST QUARTER OF FISCAL 2025

Consolidated gross margin was 320 basis points lower than the prior year primarily due to:

• Lower NIKE Brand ASP (decreasing gross margin approximately 250 basis points), primarily due to higher discounts and channel mix;

• Higher NIKE Brand product costs (decreasing gross margin approximately 100 basis points), primarily due to higher tariffs in North America;

• Lower gross margin from Converse (decreasing gross margin approximately 30 basis points).

This was partially offset by:

• Lower NIKE Brand product costs (increasing gross margin approximately 100 basis points);

• Lower warehousing and logistics costs (increasing gross margin approximately 30 basis points);

• Restructuring charges in the prior year (increasing gross margin approximately 20 basis points).

• Lower warehousing and logistics costs (increasing gross margin approximately 50 basis points), primarily due to channel mix;

• Favorable changes in net foreign currency exchange rates, including hedges (increasing gross margin approximately 30 basis points).

TOTAL SELLING AND ADMINISTRATIVE EXPENSE

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(Dollars in millions)

FEBRUARY 28, 2025 FEBRUARY 29, 2024 % CHANGE FEBRUARY 28, 2025 FEBRUARY 29, 2024 % CHANGE

2025 2024 % CHANGE

Demand creation expense (1)

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Total selling and administrative expense $ 4,016 $ 4,048 -1 %

% of revenues 34.5 % 34.0 % 50 bps 33.9 % 32.2 % 170 bps

(1) Demand creation expense consists of brand marketing expense, including advertising and promotion costs such as production and media costs, digital marketing expense, brand events and retail brand presentation costs, and sports marketing expense, including expenses related to endorsement contracts, complimentary product and sports marketing events.

% of revenues 34.3 % 34.9 % -60 bps

(1) Demand creation expense consists of brand marketing expense and sports marketing expense.

Brand marketing expense includes advertising and promotion costs such as production and media costs, digital marketing expense, brand events and retail brand presentation costs.

Sports marketing expense includes expenses related to endorsement contracts, complimentary product and sports marketing events.

(2) Operating overhead expense consists primarily of wage and benefit-related expenses and other administrative expenses, such as research and development costs, bad debt expense, rent, depreciation and amortization and costs related to professional services, certain technology investments, meetings and travel.

THIRD QUARTER OF FISCAL 2025 COMPARED TO THIRD QUARTER OF FISCAL 2024

Demand creation expense increased 8% primarily due to an increase in brand marketing expense, reflecting investment in key sports events.

Changes in foreign currency exchange rates did not have a material impact on Demand creation expense.

Operating overhead expense decreased 13% primarily due to restructuring charges in the prior year and lower wage-related expenses.

Changes in foreign currency exchange rates did not have a material impact on Operating overhead expense.

FIRST NINE MONTHS OF FISCAL 2025 COMPARED TO FIRST NINE MONTHS OF FISCAL 2024

Demand creation expense increased 8% primarily due to an increase in brand marketing expense, reflecting investment in key sports events.

Changes in foreign currency exchange rates did not have a material impact on Demand creation expense.

Operating overhead expense decreased 9% due to restructuring charges in the prior year, lower wage-related expenses and lower other administrative costs.

Changes in foreign currency exchange rates did not have a material impact on Operating overhead expense.

FIRST QUARTER OF FISCAL 2026 COMPARED TO FIRST QUARTER OF FISCAL 2025

Demand creation expense decreased 3% due to lower brand marketing expense, primarily due to higher investment in key sports events in the prior year, partially offset by higher sports marketing expense and unfavorable changes in foreign currency exchange rates.

Changes in foreign currency exchange rates increased Demand creation expense by approximately 2 percentage points.

Operating overhead expense was flat due to higher wage-related expense and unfavorable changes in foreign currency exchange rates, offset by lower other administrative costs.

Changes in foreign currency exchange rates increased Operating overhead expense by approximately 1 percentage point.

OTHER (INCOME) EXPENSE, NET

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FEBRUARY 28, 2025 FEBRUARY 29, 2024 FEBRUARY 28, 2025 FEBRUARY 29, 2024

Other (income) expense, net $ 23 $ (55)

Other (income) expense, net comprises foreign currency conversion gains and losses from the remeasurement of monetary assets and liabilities denominated in non-functional currencies and the impact of certain foreign currency derivative instruments, as well as unusual or non-operating transactions outside the normal course of business.

For the third quarter of fiscal 2025, Other (income) expense, net increased from $16 million of other income, net, in the prior year to $38 million of other income, net, in the current year, primarily due to goodwill impairment in the prior year and a net favorable change in foreign currency conversion gains and losses, including hedges.

For the first nine months of fiscal 2025, Other (income) expense, net was flat compared to the prior year.

THREE MONTHS ENDED NINE MONTHS ENDED

FEBRUARY 28, 2025 FEBRUARY 29, 2024 % CHANGE FEBRUARY 28, 2025 FEBRUARY 29, 2024 % CHANGE

Effective tax rate 5.9 % 16.5 % (1,060) bps 15.7 % 15.6 % 10 bps

Our effective tax rate was 5.9% for the third quarter of fiscal 2025, compared to 16.5% for the third quarter of fiscal 2024 primarily due to a one-time, non-cash deferred tax benefit provided by recently finalized U.S.

tax regulations related to foreign currency gains and losses.

Our effective tax rate was 15.7% for the first nine months of fiscal 2025, compared to 15.6% for the first nine months of fiscal 2024, primarily due to decreased benefits from stock-based compensation and one-time benefits in the first nine months of fiscal 2024 including the impact of the delay of the effective date of certain U.S.

foreign tax credit regulations.

These impacts were largely offset by a one-time, non-cash deferred tax benefit in the first nine months of fiscal 2025 provided by recently finalized U.S.

tax regulations related to foreign currency gains and losses.

FIRST QUARTER OF FISCAL 2026 COMPARED TO FIRST QUARTER OF FISCAL 2025

Other (income) expense, net decreased from $55 million of other income, net, to $23 million of other expense, net, in part due to a net unfavorable change in foreign currency conversion gains and losses, including hedges.

THREE MONTHS ENDED AUGUST 31,

2025 2024 % CHANGE

Effective tax rate 21.1 % 19.6 % 150 bps

FIRST QUARTER OF FISCAL 2026 COMPARED TO FIRST QUARTER OF FISCAL 2025

Our effective tax rate was 21.1% for the first quarter of fiscal 2026, compared to 19.6% for the first quarter of fiscal 2025, primarily due to decreased benefits from stock-based compensation.

For additional information, refer to Note 4 — Income Taxes within the accompanying Notes to the Unaudited Condensed Consolidated Financial Statements.

OPERATING SEGMENTS

As discussed in Note 11 — Operating Segments in the accompanying Notes to the Unaudited Condensed Consolidated Financial Statements, our operating segments are evidence of the structure of the Company's internal organization.

The NIKE Brand segments are defined by geographic regions for operations participating in NIKE Brand sales activity.

SEGMENT INFORMATION

See Note 10 — Segment Information in the accompanying Notes to the Unaudited Condensed Consolidated Financial Statements for a description of our segments and related information.

The breakdown of Revenues is as follows:

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FEBRUARY 28, 2025 FEBRUARY 29, 2024 % CHANGE % CHANGE EXCLUDING CURRENCY CHANGES (1)

2025 2024 % CHANGE % CHANGE EXCLUDING CURRENCY CHANGES (1)

North America $ 5,020 $ 4,826 4 % 4 %

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Corporate (3)

(26) (14) — — (74) (19) — —

TOTAL NIKE, INC.

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The primary financial measure used by the Company to evaluate performance of individual operating segments is EBIT.

As discussed in Note 11 — Operating Segments in the accompanying Notes to the Unaudited Condensed Consolidated Financial Statements, certain corporate costs are not included in EBIT of our operating segments.

The primary financial measure used to evaluate performance of our individual reportable operating segments is EBIT.

For additional information on our segments, refer to Note 10 — Segment Information in the accompanying Notes to the Unaudited Condensed Consolidated Financial Statements.

The breakdown of EBIT is as follows:

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FEBRUARY 28, 2025 FEBRUARY 29, 2024 % CHANGE FEBRUARY 28, 2025 FEBRUARY 29, 2024 % CHANGE

2025 2024 % CHANGE

North America $ 1,134 $ 1,216 -7 %

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EBIT margin (1)

7.3 % 10.9 % 9.9 % 12.6 %

Interest expense (income), net (18) (43) —

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NORTH AMERICA

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THREE MONTHS ENDED AUGUST 31,

(Dollars in millions) 2025 2024 % CHANGE % CHANGE EXCLUDING CURRENCY CHANGES

Footwear $ 3,219 $ 3,212 0 % 0 %

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TOTAL REVENUES $ 5,020 $ 4,826 4 % 4 %

Cost of Sales 2,897 2,627 10 %

Gross profit 2,123 2,199 -3 %

Gross margin 42.3 % 45.6 % -330 bps

Demand creation expense 442 452 -2 %

Operating overhead expense 547 529 3 %

Total selling and administrative expense 989 981 1 %

Other segment items — 2 —

EARNINGS BEFORE INTEREST AND TAXES $ 1,134 $ 1,216 -7 %

THIRD QUARTER OF FISCAL 2025 COMPARED TO THIRD QUARTER OF FISCAL 2024

• North America revenues decreased 4% on a currency-neutral basis, primarily due to lower revenues in the Jordan Brand.

Wholesale revenues increased 3%.

NIKE Direct revenues decreased 10%, primarily due to digital sales declines of 12% and comparable store sales declines of 7%.

• Footwear revenues decreased 9% on a currency-neutral basis.

Unit sales of footwear decreased 8%, while lower ASP per pair reduced footwear revenues by approximately 1 percentage point.

Lower ASP per pair was primarily due to higher discounts and changes in channel mix, partially offset by product mix.

FIRST QUARTER OF FISCAL 2026 COMPARED TO FIRST QUARTER OF FISCAL 2025

• North America revenues increased 4% on a currency-neutral basis.

Wholesale revenues increased 11%, in part due to shipment timing in the prior year as well as expanded distribution in the current year.

NIKE Direct revenues decreased 3% due to declines in digital sales of 10% while store sales were flat.

Comparable store sales were flat.

• Footwear revenues were flat on a currency-neutral basis.

Unit sales of footwear increased 5%, while lower ASP per pair reduced footwear revenues by approximately 5 percentage points.

Lower ASP per pair was primarily due to channel mix and higher discounts.

• Apparel revenues increased 11% on a currency-neutral basis.

Unit sales of apparel increased 6%, while higher ASP per unit contributed approximately 2 percentage points of apparel revenue growth.

Higher ASP per unit was primarily due to product mix, partially offset by changes in channel mix.

Reported EBIT decreased 21% reflecting lower revenues and the following:

• Gross margin contraction of 210 basis points primarily due to lower ASP and higher inventory obsolescence reserves.

Lower ASP primarily reflects higher discounts and changes in channel mix, partially offset by product mix.

• Selling and administrative expense increase of 12% driven by higher operating overhead expense and higher demand creation expense.

The increase in operating overhead expense was primarily due to higher other administrative costs.

The increase in demand creation expense was primarily due to higher brand marketing expense, reflecting investment in key sports events.

FIRST NINE MONTHS OF FISCAL 2025 COMPARED TO FIRST NINE MONTHS OF FISCAL 2024

• North America revenues decreased 8% on a currency-neutral basis, primarily due to lower revenues in the Jordan Brand, Men's and Women's.

Wholesale revenues decreased 3%.

NIKE Direct revenues decreased 12%, primarily due to digital sales declines of 17% and comparable store sales declines of 3%.

• Footwear revenues decreased 12% on a currency-neutral basis.

Unit sales of footwear decreased 10%, while lower ASP per pair reduced footwear revenues by approximately 2 percentage points.

Lower ASP per pair was primarily due to higher discounts and changes in channel mix, partially offset by strategic pricing actions.

• Apparel revenues were flat on a currency-neutral basis.

Unit sales of apparel and ASP per unit were flat, as strategic pricing actions were offset by changes in channel mix.

Reported EBIT decreased 15% reflecting lower revenues and the following:

• Gross margin contraction of 10 basis points primarily due to lower ASP and higher inventory obsolescence reserves, partially offset by lower product costs.

Lower ASP primarily reflects higher discounts and changes in channel mix.

• Selling and administrative expense increase of 3% driven by higher demand creation expense, partially offset by lower operating overhead expense.

The increase in demand creation expense was primarily due to higher brand marketing expense, reflecting investment in key sports events.

The decrease in operating overhead expense was due to lower wage-related expenses, partially offset by higher other administrative costs.

Unit sales of apparel increased 16%, while lower ASP per unit reduced apparel revenues by approximately 5 percentage points.

Lower ASP per unit was primarily due to channel mix and higher discounts.

Reported EBIT decreased 7% reflecting higher revenues and the following:

• Gross margin contraction of 330 basis points, primarily due to new tariffs and lower ASP, partially offset by lower warehousing and logistics costs.

Lower ASP primarily reflects channel mix, higher discounts and product mix.

Overall product costs were flat as higher tariffs were offset primarily by product mix.

• Demand creation expense decreased 2% due to lower brand marketing expense, primarily due to higher investment in key sports events in the prior year, partially offset by higher sports marketing expense in the current year.

• Operating overhead expense increased 3% due to higher wage-related expense, partially offset by lower other administrative costs.

EUROPE, MIDDLE EAST & AFRICA

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(Dollars in millions) 2025 2024 % CHANGE % CHANGE EXCLUDING CURRENCY CHANGES

Footwear $ 2,021 $ 1,952 4 % -2 %

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TOTAL REVENUES $ 3,331 $ 3,143 6 % 1 %

Cost of Sales 1,900 1,695 12 %

Gross profit 1,431 1,448 -1 %

Gross margin 43.0 % 46.1 % -310 bps

Demand creation expense 313 290 8 %

Operating overhead expense 382 366 4 %

Total selling and administrative expense 695 656 6 %

Other segment items 1 — —

EARNINGS BEFORE INTEREST AND TAXES $ 735 $ 792 -7 %

THIRD QUARTER OF FISCAL 2025 COMPARED TO THIRD QUARTER OF FISCAL 2024

• EMEA revenues decreased 6% on a currency-neutral basis primarily due to lower revenues in the Jordan Brand, Men's and Kids'.

Wholesale revenues decreased 3%.

NIKE Direct revenues decreased 12%, due to digital sales declines of 25% partially offset by comparable store sales growth of 9%.

• Footwear revenues decreased 7% on a currency-neutral basis.

Unit sales of footwear decreased 4%, while lower ASP per pair reduced footwear revenues by approximately 3 percentage points.

Lower ASP per pair was primarily due to changes in channel mix and higher discounts, partially offset by product mix.

• Apparel revenues decreased 4% on a currency-neutral basis.

Unit sales of apparel decreased 1%, while lower ASP per unit reduced apparel revenues by approximately 3 percentage points.

Lower ASP per unit was primarily due to changes in channel mix and higher discounts.

Reported EBIT decreased 35% reflecting lower revenues and the following:

• Gross margin contraction of 420 basis points primarily due to higher other product costs and lower ASP, partially offset by lower warehousing and logistics costs.

Lower ASP primarily reflects changes in channel mix and higher discounts.

• Selling and administrative expense decrease of 4% driven by lower operating overhead expense, partially offset by higher demand creation expense.

The decrease in operating overhead expense was primarily due to lower wage-related expenses and favorable changes in foreign currency exchange rates.

The increase in demand creation expense was due to higher sports marketing expense and brand marketing expense, partially offset by favorable changes in foreign currency exchange rates.

FIRST NINE MONTHS OF FISCAL 2025 COMPARED TO FIRST NINE MONTHS OF FISCAL 2024

• EMEA revenues decreased 10% on a currency-neutral basis due to lower revenues in Men's, the Jordan Brand, Women's and Kids'.

Wholesale revenues decreased 6%.

NIKE Direct revenues decreased 15%, due to digital sales declines of 28%, partially offset by comparable store sales growth of 4% and the addition of new stores.

FIRST QUARTER OF FISCAL 2026 COMPARED TO FIRST QUARTER OF FISCAL 2025

• EMEA revenues increased 1% on a currency-neutral basis.

Wholesale revenues increased 4%.

NIKE Direct revenues decreased 6% due to declines in digital sales of 13%, partially offset by an increase in store sales of 1%.

Comparable store sales increased 4%.

• Footwear revenues decreased 2% on a currency-neutral basis.

Unit sales of footwear decreased 10%, while lower ASP per pair reduced footwear revenues by approximately 1 percentage point.

Lower ASP per pair was primarily due to changes in channel mix and higher discounts, partially offset by strategic pricing actions.

• Apparel revenues decreased 8% on a currency-neutral basis.

Unit sales of apparel decreased 8%, while ASP per unit was flat, as strategic pricing actions were offset by changes in channel mix.

Reported EBIT decreased 19% reflecting lower revenues and the following:

• Gross margin contraction of 30 basis points primarily due to lower ASP, partially offset by lower warehousing and logistics costs.

Lower ASP primarily reflects changes in channel mix and higher discounts, partially offset by strategic pricing actions.

• Selling and administrative expense decrease of 1% driven by lower operating overhead expense, partially offset by higher demand creation expense.

The decrease in operating overhead expense was primarily due to lower wage-related expenses and lower other administrative costs.

The increase in demand creation expense was primarily due to higher brand marketing expense, reflecting investment in key sports events, partially offset by lower sports marketing expense.

Unit sales of footwear increased 4%, while lower ASP per pair reduced footwear revenues by approximately 6 percentage points.

Lower ASP per pair was primarily due to higher discounts and channel mix.

• Apparel revenues increased 6% on a currency-neutral basis.

Unit sales of apparel increased 8%, while lower ASP per unit reduced apparel revenues by approximately 2 percentage points.

Lower ASP per unit was primarily due to higher discounts, partially offset by product mix.

Reported EBIT decreased 7% reflecting higher revenues and the following:

• Gross margin contraction of 310 basis points, primarily due to higher product costs and lower ASP, partially offset by lower warehousing and logistics costs.

Lower ASP primarily reflects higher discounts.

• Demand creation expense increased 8% due to higher sports marketing expense and unfavorable changes in foreign currency exchange rates, partially offset by lower brand marketing expense, primarily due to higher investment in key sports events in the prior year.

• Operating overhead expense increased 4% due to unfavorable changes in foreign currency exchange rates and higher wage-related expense, partially offset by lower other administrative costs.

GREATER CHINA

THREE MONTHS ENDED NINE MONTHS ENDED

(Dollars in millions) FEBRUARY 28, 2025 FEBRUARY 29, 2024 % CHANGE % CHANGE EXCLUDING CURRENCY CHANGES FEBRUARY 28, 2025 FEBRUARY 29, 2024 % CHANGE % CHANGE EXCLUDING CURRENCY CHANGES

THREE MONTHS ENDED AUGUST 31,

(Dollars in millions) 2025 2024 % CHANGE % CHANGE EXCLUDING CURRENCY CHANGES

Footwear $ 1,109 $ 1,246 -11 % -12 %

5 unchanged sentences

TOTAL REVENUES $ 1,512 $ 1,666 -9 % -10 %

Cost of Sales

714 811 -12 %

47.2 % 48.7 % -150 bps

Demand creation expense

Operating overhead expense

Total selling and administrative expense

Other segment items

EARNINGS BEFORE INTEREST AND TAXES $ 377 $ 502 -25 %

THIRD QUARTER OF FISCAL 2025 COMPARED TO THIRD QUARTER OF FISCAL 2024

• Greater China revenues decreased 15% on a currency-neutral basis due to lower revenues in Men's, the Jordan Brand, Women's and Kids', reflecting our actions to prioritize the health of the marketplace.

Wholesale revenues decreased 18%.

NIKE Direct revenues decreased 11% due to digital sales declines of 20% and comparable store sales declines of 6%.

• Footwear revenues decreased 15% on a currency-neutral basis.

Unit sales of footwear decreased 15%, while ASP per pair was flat, as strategic pricing actions were offset by higher discounts and changes in channel mix.

• Apparel revenues decreased 15% on a currency-neutral basis.

Unit sales of apparel decreased 19%, while higher ASP per unit contributed approximately 4 percentage points of apparel revenue growth.

Higher ASP per unit was primarily due to strategic pricing actions.

Reported EBIT decreased 42% reflecting lower revenues and the following:

• Gross margin contraction of approximately 580 basis points, reflecting higher inventory obsolescence reserves and unfavorable changes in standard foreign currency exchange rates, partially offset by higher ASP.

Higher ASP primarily reflects strategic pricing actions, partially offset by higher discounts.

• Selling and administrative expense increase of 3% driven by higher demand creation expense.

Demand creation expense increased primarily due to higher brand marketing expense.

Operating overhead expense was flat as higher other administrative costs were offset by favorable changes in foreign currency exchange rates.

FIRST NINE MONTHS OF FISCAL 2025 COMPARED TO FIRST NINE MONTHS OF FISCAL 2024

• Greater China revenues decreased 10% on a currency-neutral basis due to lower revenues in Men's, the Jordan Brand, Women's and Kids'.

FIRST QUARTER OF FISCAL 2026 COMPARED TO FIRST QUARTER OF FISCAL 2025

• Greater China revenues decreased 10% on a currency-neutral basis.

Wholesale revenues decreased 9%.

NIKE Direct revenues decreased 11% due to digital sales declines of 19% and comparable store sales declines of 7%.

NIKE Direct revenues decreased 12% due to declines in digital sales of 27% and declines in store sales of 4%.

Comparable store sales decreased 5%.

• Footwear revenues decreased 12% on a currency-neutral basis.

Unit sales of footwear decreased 9%, while lower ASP per pair reduced footwear revenues by approximately 2 percentage points.

Lower ASP per pair was primarily due to higher discounts and changes in channel mix, partially offset by strategic pricing actions.

• Apparel revenues decreased 9% on a currency-neutral basis.

Unit sales of apparel decreased 14%, while higher ASP per unit contributed approximately 5 percentage points of apparel revenue growth.

Higher ASP per unit was primarily due to strategic pricing actions.

Unit sales of footwear decreased 11%, while lower ASP per pair reduced footwear revenues by approximately 1 percentage point.

Lower ASP per pair was primarily due to higher discounts and channel mix.

• Apparel revenues were flat on a currency-neutral basis.

Unit sales of apparel decreased 2%, while higher ASP per unit increased apparel revenues by approximately 2 percentage points.

Higher ASP per unit was primarily due to product mix, partially offset by higher discounts.

Reported EBIT decreased 25% reflecting lower revenues and the following:

• Gross margin contraction of approximately 410 basis points, primarily due to unfavorable changes in standard foreign currency exchange rates and higher inventory obsolescence reserves.

• Selling and administrative expense decrease of 3% driven by lower operating overhead expense, partially offset by higher demand creation expense.

Operating overhead expense decreased primarily due to lower wage-related expenses and lower other administrative costs.

Demand creation expense increased primarily due to higher sports marketing expense.

• Gross margin contraction of 150 basis points, primarily due to higher product costs, driven by product mix.

• Demand creation expense decreased 13%, primarily due to lower brand marketing expense, driven by higher investment in key sports events in the prior year.

• Operating overhead expense decreased 1%, primarily due to lower other administrative costs, partially offset by higher wage-related expense.

ASIA PACIFIC & LATIN AMERICA

THREE MONTHS ENDED NINE MONTHS ENDED

(Dollars in millions) FEBRUARY 28, 2025 FEBRUARY 29, 2024 % CHANGE % CHANGE EXCLUDING CURRENCY CHANGES FEBRUARY 28, 2025 FEBRUARY 29, 2024 % CHANGE % CHANGE EXCLUDING CURRENCY CHANGES

THREE MONTHS ENDED AUGUST 31,

(Dollars in millions) 2025 2024 % CHANGE % CHANGE EXCLUDING CURRENCY CHANGES

Footwear $ 1,061 $ 1,052 1 % 0 %

5 unchanged sentences

TOTAL REVENUES $ 1,490 $ 1,462 2 % 1 %

Cost of Sales 838 782 7 %

Gross profit 652 680 -4 %

Gross margin 43.8 % 46.5 % -270 bps

Demand creation expense 97 90 8 %

Operating overhead expense 208 188 11 %

Total selling and administrative expense 305 278 10 %

Other segment items (3) — —

EARNINGS BEFORE INTEREST AND TAXES $ 350 $ 402 -13 %

THIRD QUARTER OF FISCAL 2025 COMPARED TO THIRD QUARTER OF FISCAL 2024

• APLA revenues decreased 4% on a currency-neutral basis primarily due to lower revenues in Southeast Asia and India ("SEA&I") and Korea, partially offset by higher revenues in Central and South America.

APLA revenues decreased primarily due to lower revenues in Men's and the Jordan Brand.

Wholesale revenues decreased 4%.

NIKE Direct revenues decreased 4% due to digital sales declines of 8% and comparable store sales declines of 3%, partially offset by the addition of new stores.

• Footwear revenues decreased 5% on a currency-neutral basis.

Unit sales of footwear decreased 2%, while lower ASP per pair reduced footwear revenues by approximately 3 percentage points.

Lower ASP per pair was primarily due to product mix and higher discounts.

• Apparel revenues decreased 1% on a currency-neutral basis.

Unit sales of apparel decreased 1%, while ASP per unit was flat, as strategic pricing actions were offset by higher discounts and changes in channel mix.

Reported EBIT decreased 27% reflecting lower revenues and the following:

• Gross margin contraction of approximately 250 basis points primarily due to lower ASP, unfavorable changes in standard foreign currency exchange rates and higher warehousing and logistics costs, partially offset by lower product costs.

Lower ASP reflects higher discounts and product mix.

Lower product costs primarily reflects product mix.

• Selling and administrative expense increase of 2% driven by higher demand creation expense.

Demand creation expense increased primarily due to higher sports marketing expense and higher brand marketing expense.

Operating overhead expense was flat as higher wage-related expenses and higher other administrative costs were offset by favorable changes in foreign currency exchange rates.

FIRST NINE MONTHS OF FISCAL 2025 COMPARED TO FIRST NINE MONTHS OF FISCAL 2024

• APLA revenues decreased 3% on a currency-neutral basis primarily due to lower revenues in Korea and SEA&I.

APLA revenues decreased primarily due to lower revenues in Men's and the Jordan Brand.

Wholesale revenues decreased 2%.

NIKE Direct revenues decreased 4% due to digital sales declines of 10%, partially offset by comparable store sales growth of 1% and the addition of new stores.

• Footwear revenues decreased 4% on a currency-neutral basis.

Unit sales of footwear decreased 3%, while lower ASP per pair reduced footwear revenues by approximately 1 percentage point.

Lower ASP per pair was primarily due to higher discounts and changes in channel mix, partially offset by strategic pricing actions.

• Apparel revenues decreased 1% on a currency-neutral basis.

Unit sales of apparel decreased 3%, while higher ASP per unit contributed approximately 2 percentage points of apparel revenue growth.

Higher ASP per unit was primarily due to strategic pricing actions.

Reported EBIT decreased 14% reflecting lower revenues and the following:

• Gross margin contraction of approximately 110 basis points primarily due to unfavorable changes in standard foreign currency exchange rates, lower ASP and higher warehousing and logistics costs, partially offset by lower product costs.

Lower ASP reflects higher discounts and changes in channel mix, partially offset by strategic pricing actions.

• Selling and administrative expense decrease of 2% driven by lower demand creation expense.

Demand creation expense decreased primarily due to favorable changes in foreign currency exchange rates and lower brand marketing expense.

Operating overhead expense was flat as favorable changes in foreign currency exchange rates were offset by higher wage-related expenses and higher other administrative costs.

FIRST QUARTER OF FISCAL 2026 COMPARED TO FIRST QUARTER OF FISCAL 2025

• APLA revenues increased 1% on a currency-neutral basis primarily due to higher revenues in Central & South America and Pacific, partially offset by lower revenues in Southeast Asia & India and Korea.

Wholesale revenues increased 6%.

NIKE Direct revenues decreased 6% due to declines in digital sales of 8% and declines in store sales of 5%.

Comparable store sales decreased 8%.

• Footwear revenues were flat on a currency-neutral basis.

Unit sales of footwear increased 5%, while lower ASP per pair reduced footwear revenues by approximately 5 percentage points.

Lower ASP per pair was primarily due to product mix, channel mix and higher discounts.

• Apparel revenues increased 5% on a currency-neutral basis.

Unit sales of apparel increased 10%, while lower ASP per unit reduced apparel revenues by approximately 5 percentage points.

Lower ASP per unit was primarily due to higher discounts and channel mix.

Reported EBIT decreased 13% reflecting higher revenues and the following:

• Gross margin contraction of approximately 270 basis points, primarily due to lower ASP and unfavorable changes in standard foreign currency exchange rates.

Lower ASP primarily reflects product mix, higher discounts and channel mix.

• Demand creation expense increased 8%, primarily due to higher sports marketing expense.

• Operating overhead expense increased 11%, primarily due to higher wage-related expense and higher other administrative costs.

GLOBAL BRAND DIVISIONS

THREE MONTHS ENDED NINE MONTHS ENDED

THREE MONTHS ENDED AUGUST 31,

(Dollars in millions)

FEBRUARY 28, 2025 FEBRUARY 29, 2024 % CHANGE % CHANGE EXCLUDING CURRENCY CHANGES FEBRUARY 28, 2025 FEBRUARY 29, 2024 % CHANGE % CHANGE EXCLUDING CURRENCY CHANGES

2025 2024 % CHANGE

Revenues $ 9 $ 14 -36 %

Cost of Sales 168 153 10 %

(159) (139) -14 %

Demand creation expense 203 242 -16 %

Operating overhead expense 831 846 -2 %

Total selling and administrative expense 1,034 1,088 -5 %

Other segment items

EARNINGS (LOSS) BEFORE INTEREST AND TAXES

Global Brand Divisions primarily represent demand creation and operating overhead expense, including product creation and design expenses that are centrally managed for the NIKE Brand, as well as costs associated with NIKE Direct global digital operations and enterprise technology.

$ (1,192) $ (1,227) 3 %

Global Brand Divisions primarily represents costs, including product creation and design expenses, that are centrally managed for the NIKE Brand, as well as costs associated with NIKE Direct global digital operations and enterprise technology.

Global Brand Divisions revenues include NIKE Brand licensing and other miscellaneous revenues that are not part of a geographic operating segment.

THIRD QUARTER OF FISCAL 2025 COMPARED TO THIRD QUARTER OF FISCAL 2024

Global Brand Divisions' loss before interest and taxes decreased 9% driven by lower operating overhead expense, partially offset by higher demand creation expense.

The decrease in operating overhead expense was due to lower wage-related expenses and lower other administrative costs.

Higher demand creation expense was due to increased brand marketing expense.

FIRST NINE MONTHS OF FISCAL 2025 COMPARED TO FIRST NINE MONTHS OF FISCAL 2024

Global Brand Divisions' loss before interest and taxes decreased 3% driven by lower operating overhead expense, partially offset by higher demand creation expense.

The decrease in operating overhead expense was primarily due to lower wage-related expenses.

Higher demand creation expense was due to increased brand marketing expense and sports marketing expense.

THREE MONTHS ENDED NINE MONTHS ENDED

FIRST QUARTER OF FISCAL 2026 COMPARED TO FIRST QUARTER OF FISCAL 2025

Global Brand Divisions' loss before interest and taxes decreased 3%, primarily due to lower Demand creation expense and lower Operating overhead expense.

Demand creation expense decreased 16%, primarily due to lower brand marketing expense, driven by higher investment in key sports events in the prior year.

Operating overhead expense decreased 2%, primarily due to lower other administrative costs, partially offset by higher wage-related expense.

THREE MONTHS ENDED AUGUST 31,

(Dollars in millions)

FEBRUARY 28, 2025 FEBRUARY 29, 2024 % CHANGE % CHANGE EXCLUDING CURRENCY CHANGES FEBRUARY 28, 2025 FEBRUARY 29, 2024 % CHANGE % CHANGE EXCLUDING CURRENCY CHANGES

2025 2024 % CHANGE % CHANGE EXCLUDING CURRENCY CHANGES

Footwear $ 321 $ 436 -26 % -28 %

7 unchanged sentences

TOTAL REVENUES $ 366 $ 501 -27 % -28 %

Cost of Sales

193 233 -17 %

173 268 -35 %

Gross margin 47.3 % 53.5 % -620 bps

Demand creation expense

Operating overhead expense

102 113 -10 %

Total selling and administrative expense

Other segment items

EARNINGS BEFORE INTEREST AND TAXES $ 39 $ 121 -68 %

(1) Other revenues consist of territories serviced by third-party licensees who pay royalties to Converse for the use of its registered trademarks and other intellectual property rights.

THIRD QUARTER OF FISCAL 2025 COMPARED TO THIRD QUARTER OF FISCAL 2024

• Converse revenues decreased 16% on a currency-neutral basis driven by revenue declines in all territories.

Unit sales decreased 6%, while ASP decreased 10%, reflecting higher discounts in direct to consumer.

• Wholesale revenues decreased 17% on a currency-neutral basis, as declines in Western Europe and Asia were partially offset by growth in North America.

• Direct to consumer revenues decreased 15% on a currency-neutral basis, primarily due to reduced traffic in North America and lower ASP due to higher discounts.

Reported EBIT decreased 60% reflecting lower revenues and the following:

• Gross margin contraction of approximately 470 basis points due to lower ASP, partially offset by lower product costs.

Lower ASP primarily reflects higher discounts.

• Selling and administrative expense decrease of 4% driven by lower operating overhead expense.

Operating overhead expense decreased primarily due to lower other administrative costs.

FIRST NINE MONTHS OF FISCAL 2025 COMPARED TO FIRST NINE MONTHS OF FISCAL 2024

• Converse revenues decreased 16% on a currency-neutral basis driven by revenue declines in all territories.

Unit sales decreased 10%, while ASP decreased 6%, reflecting higher discounts in direct to consumer.

• Wholesale revenues decreased 17% on a currency-neutral basis, as declines in Western Europe and Asia were partially offset by growth in North America.

• Direct to consumer revenues decreased 16% on a currency-neutral basis due to reduced traffic in all territories and lower ASP due to higher discounts.

FIRST QUARTER OF FISCAL 2026 COMPARED TO FIRST QUARTER OF FISCAL 2025

• Converse revenues decreased 28% on a currency-neutral basis driven by declines in all territories.

Unit sales decreased 22%, while lower ASP reduced revenues by approximately 6 percentage points.

Lower ASP per unit was primarily due to higher discounts and product mix.

• Wholesale revenues decreased 31% on a currency-neutral basis, driven by declines in all territories.

• Direct to consumer revenues decreased 25% on a currency-neutral basis, reflecting reduced traffic in Western Europe and North America.

Reported EBIT decreased 68% reflecting lower revenues and the following:

• Gross margin contraction of approximately 280 basis points due to lower ASP, and higher logistics costs, partially offset by lower product costs.

Lower ASP primarily reflects higher discounts.

• Selling and administrative expense decrease of 3% driven by lower operating overhead expense, partially offset by higher demand creation expense.

Operating overhead expense decreased primarily due to lower wage-related expenses and lower other administrative costs.

Demand creation expense increased primarily due to higher brand marketing expense.

THREE MONTHS ENDED NINE MONTHS ENDED

• Gross margin contraction of approximately 620 basis points, primarily due to lower ASP and higher warehousing and logistics costs.

Lower ASP primarily reflects higher discounts and product mix.

• Demand creation expense decreased 6%, primarily due to lower brand marketing expense.

• Operating overhead expense decreased 10%, primarily due to lower wage-related expense and lower other administrative costs.

THREE MONTHS ENDED AUGUST 31,

(Dollars in millions)

FEBRUARY 28, 2025 FEBRUARY 29, 2024 % CHANGE FEBRUARY 28, 2025 FEBRUARY 29, 2024 % CHANGE

2025 2024 % CHANGE

Revenues $ (8) $ (23) —

Cost of Sales (17) (13) —

Demand creation expense 1 3 -67 %

Operating overhead expense 520 540 -4 %

Total selling and administrative expense 521 543 -4 %

Other segment items

EARNINGS (LOSS) BEFORE INTEREST AND TAXES

Corporate revenues primarily consist of foreign currency hedge gains and losses related to revenues generated by entities within the NIKE Brand geographic operating segments and Converse, but managed through our central foreign exchange risk management program.

The Corporate loss before interest and taxes primarily consists of unallocated general and administrative expenses, including expenses associated with centrally managed departments;

$ (539) $ (542) 1 %

Corporate primarily consists of unallocated general and administrative expenses, including expenses associated with centrally managed departments;

depreciation and amortization related to our corporate headquarters;

1 unchanged sentence

and certain foreign currency gains and losses.

In addition to the foreign currency gains and losses recognized within Corporate revenues, foreign currency results in Corporate include gains and losses resulting from the difference between actual foreign currency exchange rates and standard rates used to record non-functional currency denominated product purchases within the NIKE Brand geographic operating segments and Converse;

2 unchanged sentences

and certain other foreign currency derivative instruments.

THIRD QUARTER OF FISCAL 2025 COMPARED TO THIRD QUARTER OF FISCAL 2024

Corporate's loss before interest and taxes decreased $404 million for the third quarter of fiscal 2025, primarily due to the following:

• a favorable change of $403 million, related to restructuring charges in the prior year, $340 million of which was reported as a component of consolidated Operating overhead expense and $63 million of which was reported as a component of consolidated gross margin;

• a favorable change of $14 million related to the remeasurement of monetary assets and liabilities denominated in non-functional currencies and the impact of certain foreign currency derivative instruments, reported as a component of consolidated Other (income) expense, net;

• an unfavorable change of $39 million related to the difference between actual foreign currency exchange rates and standard foreign currency exchange rates assigned to the NIKE Brand geographic operating segments and Converse, net of hedge gains and losses, reported as a component of consolidated gross margin.

FIRST NINE MONTHS OF FISCAL 2025 COMPARED TO FIRST NINE MONTHS OF FISCAL 2024

Corporate's loss before interest and taxes decreased $483 million for the first nine months of fiscal 2025, primarily due to the following:

• a favorable change of $142 million primarily related to lower wage-related expenses and lower other administrative costs, reported as a component of consolidated Operating overhead expense;

• an unfavorable change of $68 million related to the difference between actual foreign currency exchange rates and standard foreign currency exchange rates assigned to the NIKE Brand geographic operating segments and Converse, net of hedge gains and losses, reported as a component of consolidated gross margin;

FIRST QUARTER OF FISCAL 2026 COMPARED TO FIRST QUARTER OF FISCAL 2025

Corporate's loss before interest and taxes decreased $3 million, primarily due to the following:

• a favorable change of $20 million in Operating overhead expense primarily related to lower other administrative costs, partially offset by higher wage-related expense;

• a favorable change in net foreign currency gains and losses of $17 million related to the difference between actual foreign currency exchange rates and standard foreign currency exchange rates assigned to the NIKE Brand geographic operating segments and Converse, net of hedge gains and losses;

these results are reported as a component of consolidated Gross profit;

• an unfavorable change of $37 million related to the remeasurement of monetary assets and liabilities denominated in non-functional currencies and the impact of certain foreign currency derivative instruments, reported as a component of consolidated Other (income) expense, net.

8 unchanged sentences

We do not hold or issue derivative instruments for trading or speculative purposes.

As of and for the three and nine months ended February 28, 2025, there have been no material changes to the Company's hedging program or strategy from what was disclosed within our Annual Report.

As of and for the three months ended August 31, 2025, there have been no material changes to our hedging program or strategy from what was disclosed within our Annual Report.

Refer to Note 3 — Fair Value Measurements and Note 7 — Risk Management and Derivatives in the accompanying Notes to the Unaudited Condensed Consolidated Financial Statements for additional description of outstanding derivatives at each reported period end.

23 unchanged sentences

Dollars for consolidated reporting results in a cumulative translation adjustment to Accumulated other comprehensive income (loss) within Shareholders' equity.

The impact of foreign exchange rate fluctuations on the translation of our consolidated Revenues was a detriment of approximately $310 million and $342 million for the three and nine months ended February 28, 2025, respectively.

The impact of foreign exchange rate fluctuations on the translation of our Income before income taxes was a detriment of approximately $67 million and $70 million for the three and nine months ended February 28, 2025, respectively.

The impact of foreign exchange rate fluctuations on the translation of our consolidated Revenues was a benefit of approximately $213 million for the three months ended August 31, 2025.

The impact of foreign exchange rate fluctuations on the translation of our Income before income taxes was a benefit of approximately $54 million for the three months ended August 31, 2025.

MANAGING TRANSLATIONAL EXPOSURES

6 unchanged sentences

We utilize forward contracts and/or options to mitigate the variability of the forecasted future purchases and sales of these U.S.

Dollar investments.

The combination of the purchase and sale of the U.S.

Dollar investment and the hedging instrument has the effect of partially offsetting the year-over-year foreign currency translation impact on net earnings in the period the investments are sold.

Hedges of the purchase of U.S.

Dollar denominated available-for-sale investments are accounted for as cash flow hedges.

We estimate the combination of translation of foreign currency-denominated profits from our international businesses and the year-over-year change in foreign currency related gains and losses included in Other (income) expense, net had an unfavorable impact of approximately $53 million and $88 million on our Income before income taxes for the three and nine months ended February 28, 2025, respectively.

Dollar investments and to mitigate exposure to forecasted future cash flows of certain intercompany transactions.

The combination of these foreign currency exposures and the related hedging instruments has the effect of partially offsetting the year-over-year foreign currency translation impact on net earnings.

These hedges are generally accounted for as cash flow hedges.

We estimate the combination of translation of foreign currency-denominated profits from our international businesses and the year-over-year change in foreign currency related gains and losses included in Other (income) expense, net had a favorable impact of approximately $17 million on our Income before income taxes for the three months ended August 31, 2025.

LIQUIDITY AND CAPITAL RESOURCES

CASH FLOW ACTIVITY

Cash provided (used) by operations was an inflow of $3,235 million for the first nine months of fiscal 2025 compared to an inflow of $4,810 million for the first nine months of fiscal 2024.

Net income, adjusted for non-cash items, generated $3,883 million of operating cash inflow for the first nine months of fiscal 2025, compared to $5,096 million for the first nine months of fiscal 2024.

The net change in certain working capital components and other assets and liabilities resulted in a decrease to cash provided by operations of $648 million for the first nine months of fiscal 2025 compared to a decrease of $286 million for the first nine months of fiscal 2024.

This net change was primarily impacted by unfavorable changes to Inventories and favorable changes to Accounts receivables, net.

This was due to lower sales in the current period as well as an increase in inventory units, partially offset by lower product costs and shifts in product mix.

Cash provided (used) by investing activities was an outflow of $289 million for the first nine months of fiscal 2025, compared to an inflow of $1,184 million for the first nine months of fiscal 2024, primarily driven by the net change in short-term investments (including sales, maturities and purchases).

For the first nine months of fiscal 2025, the net change in short-term investments resulted in a cash inflow of $33 million compared to a cash inflow of $1,792 million for the first nine months of fiscal 2024, primarily reflecting higher maturities in the prior period.

Cash provided (used) by financing activities was an outflow of $4,176 million for the first nine months of fiscal 2025 compared to an outflow of $4,468 million for the first nine months of fiscal 2024.

The decreased outflow was primarily due to lower share repurchases of $2,786 million in the first nine months of fiscal 2025 compared to $3,214 million in the first nine months of fiscal 2024, partially offset by higher dividend payments of $1,709 million in the first nine months of fiscal 2025 compared to $1,609 million in the first nine months of fiscal 2024.

During the first nine months of fiscal 2025, we repurchased a total of 34.4 million shares of NIKE's Class B Common Stock for $2,753 million (an average price of $80.02 per share) under the four-year, $18 billion share repurchase plan authorized by the Board of Directors in June 2022.

As of February 28, 2025, we have repurchased 119.3 million shares at a cost of approximately $11.8 billion (an average price of $98.97 per share) under this $18 billion share repurchase program.

We continue to expect funding of share repurchases will come from operating cash flows, excess cash and/or proceeds from debt.

The timing and the amount of share repurchases will be dictated by our capital needs and stock market conditions.

THREE MONTHS ENDED AUGUST 31,

(Dollars in millions)

2025 2024 $ CHANGE

Cash provided (used by):

$ 222 $ 394 $ (172)

Investing activities

(59) (166) 107

Financing activities

(598) (1,622) 1,024

Effect of exchange rate changes on cash and equivalents

NET INCREASE (DECREASE) IN CASH AND EQUIVALENTS

$ (440) $ (1,375) $ 935

Cash provided by operations decreased $172 million.

This was driven by a decrease of $239 million in Net income, adjusted for non-cash items, and changes in certain working capital components and other assets and liabilities, which increased $67 million.

The change in working capital was primarily impacted by favorable changes to Accounts receivable and Inventories.

This was in part due to the timing of wholesale shipments as well as a larger increase in inventory units in the prior period.

These changes were partially offset by changes to Accounts payable, due to the timing of payments.

Cash used by investing activities decreased $107 million, primarily driven by the net change in short-term investments (including sales, maturities and purchases).

Cash used by financing activities decreased $1,024 million, primarily driven by lower share repurchases.

During the first three months of fiscal 2026, we purchased a total of 1.8 million shares of NIKE's Class B Common Stock for $123 million (an average price of $68.20 per share) under the four-year, $18 billion share repurchase plan authorized by the Board of Directors in June 2022.

As of August 31, 2025, we have repurchased 124.4 million shares at a cost of approximately $12.1 billion (an average price of $97.57 per share) under this $18 billion share repurchase program.

During the first quarter of fiscal 2026, we continued to moderate and ultimately stopped repurchases under our existing share repurchase program due to lower operating cash flows in the current year.

The existing program remains authorized by the Board of Directors and we may resume share repurchases in the future at any time, depending upon market conditions, our liquidity and capital needs and other factors.

We continue to expect funding of share repurchases will come from operating cash flows and excess cash.

CAPITAL RESOURCES

On July 17, 2025, we filed a shelf registration statement (the "Shelf") with the U.S.

Securities and Exchange Commission (the "SEC") which permits us to issue an unlimited amount of debt securities from time to time.

Securities and Exchange Commission (the "SEC") which permits us to issue an unlimited amount of securities from time to time.

The Shelf expires on July 17, 2028.

As of February 28, 2025, our committed credit facilities were unchanged from the information previously reported within our Annual Report.

We currently have long-term debt ratings of AA- and A1 from Standard and Poor's Corporation and Moody's Investor Services, respectively.

As of August 31, 2025, our committed credit facilities were unchanged from the information previously reported within our Annual Report.

We currently have long-term debt ratings of A+ and A1 from Standard and Poor's Corporation and Moody's Investor Services, respectively.

Any changes to these ratings could result in interest rate and facility fee changes.

As of February 28, 2025, we were in full compliance with the covenants under our facilities and believe it is unlikely we will fail to meet any of the covenants in the foreseeable future.

As of February 28, 2025 and May 31, 2024, no amounts were outstanding under our committed credit facilities.

On March 7, 2025, subsequent to the end of the third quarter of fiscal 2025, we entered into a 364-day committed credit facility agreement with a syndicate of banks, which provides for up to $1 billion of borrowings, with an option to increase borrowings up to $1.5 billion in total with lender approval.

The facility matures on March 6, 2026, with an option to extend the maturity date an additional 364 days.

This facility replaces the prior $1 billion 364-day credit facility agreement entered into on March 8, 2024, which matured on March 7, 2025.

Refer to Note 4 – Short-term Borrowings and Credit Lines for more information.

On March 7, 2025, we also entered into a five-year committed credit facility agreement with a syndicate of banks which provides for up to $2 billion of borrowings, with the option to increase borrowings up to $3 billion in total with lender approval.

The facility matures on March 7, 2030, with options to extend the maturity date up to an additional two years.

This facility replaces the prior $2 billion five-year credit facility agreement entered into on March 11, 2022, which would have matured on March 11, 2027.

Refer to Note 4 – Short-term Borrowings and Credit Lines for more information.

As of August 31, 2025, we were in full compliance with the covenants under our facilities and believe it is unlikely we will fail to meet any of the covenants in the foreseeable future.

As of August 31, 2025 and May 31, 2025, no amounts were outstanding under our committed credit facilities.

Liquidity is also provided by our $3 billion commercial paper program.

As of and for the three months ended February 28, 2025, we did not have any borrowings outstanding under our $3 billion program.

As of and for the three months ended August 31, 2025, we did not have any borrowings outstanding under our $3 billion program.

We may issue commercial paper or other debt securities depending on general corporate needs.

In March 2025, subsequent to the end of the third quarter of fiscal 2025, we repaid the $1.0 billion aggregate principal amount outstanding of our 2.40% notes due 2025 at maturity.

To date, in fiscal 2026, we have not experienced difficulty accessing the capital or credit markets;

however, future volatility may increase costs associated with issuing commercial paper or other debt instruments or affect our ability to access those markets.

As of February 28, 2025, we had Cash and equivalents and Short-term investments totaling $10.4 billion, primarily consisting of commercial paper, corporate notes, deposits held at major banks, money market funds, U.S.

As of August 31, 2025, we had Cash and equivalents and Short-term investments totaling $8.6 billion, primarily consisting of commercial paper, corporate notes, deposits held at major banks, money market funds, U.S.

Treasury obligations and other investment grade fixed-income securities.

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All of our investments are investment grade to minimize our credit risk.

While individual securities have varying durations, as of February 28, 2025, the weighted average days to maturity of our cash equivalents and short-term investments portfolio was 87 days.

We believe that existing Cash and equivalents, Short-term investments and cash generated by operations, together with access to external sources of funds as described above, will be sufficient to meet our domestic and foreign capital needs in the foreseeable future.

CONTRACTUAL OBLIGATIONS

As a result of renewals of, and additions to, outstanding endorsement contracts, including associated marketing commitments, cash payments due under these contracts have increased from what was reported within our Annual Report.

Obligations under these endorsement contracts as of February 28, 2025, and significant contracts entered into through the date of this report, were $15.1 billion, with $1.4 billion payable within 12 months.

Other than the changes reported above, there have been no significant changes to the material cash requirements reported within our Annual Report.

While individual securities have varying durations, as of August 31, 2025, the weighted average days to maturity of our cash equivalents and short-term investments portfolio was 106 days.

There have been no significant changes to the material cash requirements previously reported.

OFF-BALANCE SHEET ARRANGEMENTS

As of February 28, 2025, we did not have any off-balance sheet arrangements that have, or are reasonably likely to have, a material effect on our current or future financial condition, results of operations, liquidity, capital expenditures or capital resources.

NEW ACCOUNTING PRONOUNCEMENTS

As of August 31, 2025, we did not have any off-balance sheet arrangements that have, or are reasonably likely to have, a material effect on our current or future financial condition, results of operations, liquidity, capital expenditures or capital resources.

RECENT ACCOUNTING PRONOUNCEMENTS

Refer to Note 1 — Summary of Significant Accounting Policies within the accompanying Notes to the Unaudited Condensed Consolidated Financial Statements for recently adopted and issued accounting standards.

CRITICAL ACCOUNTING ESTIMATES

Our discussion and analysis of our financial condition and results of operations are based upon our Unaudited Condensed Consolidated Financial Statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America.

The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses and related disclosure of contingent assets and liabilities.

We believe the assumptions and judgments involved in the accounting estimates described in the "Management's Discussion and Analysis of Financial Condition and Results of Operations" section within our Annual Report have the greatest potential impact on our financial statements, so we consider these to be our critical accounting estimates.

Actual results could differ from these estimates.

We are not currently aware of any reasonably likely events or circumstances that would result in materially different amounts being reported.

The preparation of our Unaudited Condensed Consolidated Financial Statements in accordance with U.S.

GAAP requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses and related disclosure of contingent assets and liabilities.

We believe the assumptions and judgments involved in the accounting estimates described in the "Management's Discussion and Analysis of Financial Condition and Results of Operations" section within the Annual Report have the greatest potential impact on our Unaudited Condensed Consolidated Financial Statements, so we consider these to be our critical accounting estimates.

Because of the uncertainty inherent in these matters, actual results could differ from these estimates.

Within the context of these critical accounting estimates, we are not currently aware of any reasonably likely events or circumstances that would result in materially different amounts being reported.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis