What changed in this filing

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Item 2. Management’s Discussion and Analysis

2025-12-30 compared with 2025-10-01 · 286 added, 154 removed, 397 unchanged (53% of the section changed)

7 unchanged sentences

QUARTERLY FINANCIAL HIGHLIGHTS

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.

Revenues were $12.4 billion for the second quarter of fiscal 2026, up 1% on a reported basis.

• NIKE Brand wholesale revenues were $7.5 billion for the second quarter of fiscal 2026 compared to $6.9 billion for the second quarter of fiscal 2025, primarily driven by an increase in North America, partially offset by declines in Greater China and Asia Pacific & Latin America ("APLA").

• NIKE Direct revenues were $4.6 billion for the second quarter of fiscal 2026 compared to $5.0 billion for the second quarter of fiscal 2025, primarily driven by a decrease in traffic in NIKE Brand Digital.

• Gross margin for the second quarter of fiscal 2026 decreased 300 basis points to 40.6% primarily due to higher tariffs in North America.

• Inventories as of November 30, 2025, were $7.7 billion, an increase of 3% compared to May 31, 2025, driven by increased product costs including higher tariffs in North America.

• We returned approximately $598 million to our shareholders in the second quarter of fiscal 2026 through dividends.

FACTORS IMPACTING OUR BUSINESS

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• Product Management:

Reducing the supply of certain footwear products in the marketplace as we shift to new and innovative products and rebalance the mix of our footwear portfolio.

Accelerating product innovation and reducing the supply of certain footwear products in the marketplace to rebalance the mix of our footwear portfolio.

• Marketplace Management:

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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.

North America has made the most progress against these actions, while Greater China and Converse will take more time.

In Greater China, a trend of declining store traffic, elevated promotional activity and higher levels of inventory across the marketplace are negatively impacting revenues and overall profitability, while Converse is in the midst of a strategic reset of the brand and marketplace.

We expect negative impacts from Greater China and Converse to continue throughout fiscal 2026.

However, we believe these product, marketplace and brand management actions taken across our portfolio will reignite brand momentum and reposition our business to drive long-term shareholder value.

USE OF NON-GAAP FINANCIAL MEASURES

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Earnings Before Interest and Taxes ("EBIT"):

Calculated as Net income before Interest expense (income), net and Income tax expense in the Unaudited Condensed Consolidated Statements of Income.

Calculated as Net income before Interest (income) expense, net and Income tax expense in the Unaudited Condensed Consolidated Statements of Income.

Total NIKE, Inc.

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

THREE MONTHS ENDED AUGUST 31,

EBIT for the three and six months ended November 30, 2025 and November 30, 2024 are as follows:

THREE MONTHS ENDED NOVEMBER 30, SIX MONTHS ENDED NOVEMBER 30,

(Dollars in millions) 2025 2024 2025 2024

Net income $ 792 $ 1,163 $ 1,519 $ 2,214

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

Interest (income) expense, net

(9) (24) (27) (67)

Income tax expense 207 253 402 509

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EBIT divided by total NIKE, Inc.

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

THREE MONTHS ENDED AUGUST 31,

Our EBIT margin calculations for the three and six months ended November 30, 2025 and November 30, 2024 are as follows:

THREE MONTHS ENDED NOVEMBER 30, SIX MONTHS ENDED NOVEMBER 30,

(Dollars in millions) 2025 2024 2025 2024

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Revenues $ 12,427 $ 12,354 $ 24,147 $ 23,943

8.0 % 11.3 % 7.8 % 11.1 %

Currency-neutral revenues:

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RESULTS OF OPERATIONS

THREE MONTHS ENDED AUGUST 31,

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

THREE MONTHS ENDED NOVEMBER 30, SIX MONTHS ENDED NOVEMBER 30,

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

Revenues $ 12,427 $ 12,354 1 % $ 24,147 $ 23,943 1 %

6 unchanged sentences

% of revenues 32.5 % 32.4 % 33.4 % 33.6 %

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

Interest (income) expense, net

(9) (24) — (27) (67) —

Other (income) expense, net 16 (8) — 39 (63) —

5 unchanged sentences

CONSOLIDATED OPERATING RESULTS

THREE MONTHS ENDED AUGUST 31,

THREE MONTHS ENDED NOVEMBER 30, SIX MONTHS ENDED NOVEMBER 30,

(Dollars in millions)

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

NIKE Brand Revenues by:

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Corporate (3)

3 (25) — — (5) (48) — —

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.

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.

SECOND QUARTER OF FISCAL 2026 COMPARED TO SECOND QUARTER OF FISCAL 2025

Revenues for the second quarter of fiscal 2026 were $12.4 billion, up 1% on a reported basis.

On a currency-neutral basis, NIKE, Inc.

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

Revenues were flat, primarily due to higher revenues in North America, which increased NIKE, Inc.

Revenues by approximately 4 percentage points.

Lower revenues in Greater China, Converse and APLA reduced NIKE, Inc.

Revenues by approximately 2, 1 and 1 percentage points, respectively.

• NIKE Brand revenues increased 1% on both a reported and currency-neutral basis.

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

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

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

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

Unit sales of apparel increased 4%, while ASP per unit was flat as higher discounts and channel mix were offset primarily by product mix.

• NIKE Brand wholesale revenues increased 8% on both a reported and currency-neutral basis.

The increase on a currency-neutral basis was driven by higher revenues in North America, partially offset by lower revenues in Greater China and APLA.

• NIKE Direct revenues were $4.6 billion for the second quarter of fiscal 2026, down 8% on a reported basis and down 9% on a currency-neutral basis, due to declines in NIKE Brand Digital sales of 14% and declines in NIKE stores sales of 3%.

NIKE Brand Digital sales were $2.4 billion for the second quarter of fiscal 2026 compared to $2.8 billion for the second quarter of fiscal 2025, with declines primarily due to reduced traffic.

Comparable store sales decreased 3%.

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

FIRST SIX MONTHS OF FISCAL 2026 COMPARED TO FIRST SIX MONTHS OF FISCAL 2025

Revenues for the first six months of fiscal 2026 were $24.1 billion, up 1% on a reported basis.

On a currency-neutral basis, NIKE, Inc.

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

Revenues by approximately 2, 1 and 1 percentage points, respectively.

Higher revenues in North America increased NIKE, Inc.

Revenues by approximately 3 percentage points.

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

• NIKE Brand revenues increased 2% on a reported basis and 1% on a currency-neutral basis.

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

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.

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

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

• NIKE Brand apparel revenues increased 5% on a currency-neutral basis.

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• NIKE Brand wholesale revenues increased 8% on a reported basis and 6% 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%.

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

• NIKE Direct revenues were $9.1 billion for the first six months of fiscal 2026, down 6% on a reported basis and down 7% on a currency-neutral basis, due to declines in NIKE Brand Digital sales of 13% and declines in NIKE stores sales of 2%.

NIKE Brand Digital sales were $4.5 billion in the second quarter of fiscal 2026 compared to $5.1 billion in the second quarter of fiscal 2025, with declines primarily due to reduced traffic.

Comparable store sales decreased 2%.

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

THREE MONTHS ENDED AUGUST 31,

THREE MONTHS ENDED NOVEMBER 30, SIX MONTHS ENDED NOVEMBER 30,

(Dollars in millions)

2025 2024 % CHANGE

2025 2024 % CHANGE 2025 2024 % CHANGE

Gross profit $ 5,045 $ 5,389 -6 % $ 9,988 $ 10,646 -6 %

Gross margin 42.2 % 45.4 % -320 bps

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

Gross margin 40.6 % 43.6 % -300 bps 41.4 % 44.5 % -310 bps

SECOND QUARTER OF FISCAL 2026 COMPARED TO SECOND QUARTER OF FISCAL 2025

Consolidated gross margin was 300 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 360 basis points), primarily due to higher tariffs in North America;

• Lower NIKE Brand ASP (decreasing gross margin approximately 50 basis points), primarily due to channel mix and higher discounts, partially offset by strategic pricing;

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

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• Favorable changes in net foreign currency exchange rates, including hedges (increasing gross margin approximately 40 basis points);

• Lower other costs (increasing gross margin approximately 40 points), primarily due to lower inventory obsolescence reserves.

FIRST SIX MONTHS OF FISCAL 2026 COMPARED TO FIRST SIX MONTHS OF FISCAL 2025

Consolidated gross margin was 310 basis points lower than the prior year primarily due to:

• Higher NIKE Brand product costs (decreasing gross margin approximately 230 basis points), primarily due to higher tariffs in North America;

• Lower NIKE Brand ASP (decreasing gross margin approximately 150 basis points), primarily due to channel mix and higher discounts, partially offset by strategic pricing;

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

This was partially offset by:

• 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

THREE MONTHS ENDED AUGUST 31,

THREE MONTHS ENDED NOVEMBER 30, SIX MONTHS ENDED NOVEMBER 30,

(Dollars in millions)

2025 2024 % CHANGE

2025 2024 % CHANGE 2025 2024 % CHANGE

Demand creation expense (1)

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Total selling and administrative expense $ 4,039 $ 4,005 1 % $ 8,055 $ 8,053 — %

% of revenues 34.3 % 34.9 % -60 bps

% of revenues 32.5 % 32.4 % 10 bps 33.4 % 33.6 % -20 bps

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

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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.

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.

(2) Operating overhead expense consists primarily of wage and benefit-related expenses and other administrative costs, 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.

SECOND QUARTER OF FISCAL 2026 COMPARED TO SECOND QUARTER OF FISCAL 2025

Demand creation expense increased 13% due to higher brand marketing expense and higher sports marketing expense.

Changes in foreign currency exchange rates increased Demand creation expense by approximately 1 percentage point.

Operating overhead expense decreased 4% due to lower wage-related expense and lower other administrative costs.

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

FIRST SIX MONTHS OF FISCAL 2026 COMPARED TO FIRST SIX MONTHS OF FISCAL 2025

Demand creation expense increased 5% primarily due to higher sports marketing expense.

Changes in foreign currency exchange rates increased Demand creation expense by approximately 1 percentage point.

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

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

OTHER (INCOME) EXPENSE, NET

THREE MONTHS ENDED AUGUST 31,

THREE MONTHS ENDED NOVEMBER 30, SIX MONTHS ENDED NOVEMBER 30,

(Dollars in millions)

2025 2024 2025 2024

Other (income) expense, net $ 16 $ (8) $ 39 $ (63)

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.

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.

SECOND QUARTER OF FISCAL 2026 COMPARED TO SECOND QUARTER OF FISCAL 2025

Other (income) expense, net decreased from $8 million of other income, net, to $16 million of other expense, net, primarily due to an unfavorable net change in foreign currency conversion gains and losses, including hedges.

FIRST SIX MONTHS OF FISCAL 2026 COMPARED TO FIRST SIX MONTHS OF FISCAL 2025

Other (income) expense, net decreased from $63 million of other income, net, to $39 million of other expense, net, primarily due to an unfavorable net change in foreign currency conversion gains and losses, including hedges.

THREE MONTHS ENDED NOVEMBER 30, SIX MONTHS ENDED NOVEMBER 30,

2025 2024 % CHANGE 2025 2024 % CHANGE

Effective tax rate 20.7 % 17.9 % 280 bps 20.9 % 18.7 % 220 bps

SECOND QUARTER OF FISCAL 2026 COMPARED TO SECOND QUARTER OF FISCAL 2025

Our effective tax rate increased from 17.9% to 20.7%, primarily due to changes in earnings mix.

FIRST SIX MONTHS OF FISCAL 2026 COMPARED TO FIRST SIX MONTHS OF FISCAL 2025

Our effective tax rate increased from 18.7% to 20.9%, primarily due to changes in earnings mix and 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.

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The breakdown of Revenues is as follows:

THREE MONTHS ENDED AUGUST 31,

THREE MONTHS ENDED NOVEMBER 30, SIX MONTHS ENDED NOVEMBER 30,

(Dollars in millions)

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

North America $ 5,633 $ 5,179 9 % 9 % $ 10,653 $ 10,005 6 % 7 %

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Corporate (3)

3 (25) — — (5) (48) — —

TOTAL NIKE, INC.

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The breakdown of EBIT is as follows:

THREE MONTHS ENDED AUGUST 31,

THREE MONTHS ENDED NOVEMBER 30, SIX MONTHS ENDED NOVEMBER 30,

(Dollars in millions)

2025 2024 % CHANGE

2025 2024 % CHANGE 2025 2024 % CHANGE

North America $ 1,261 $ 1,371 -8 % $ 2,395 $ 2,587 -7 %

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EBIT margin (1)

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

8.0 % 11.3 % 7.8 % 11.1 %

Interest (income) expense, net (9) (24) — (27) (67) —

TOTAL NIKE, INC.

4 unchanged sentences

NORTH AMERICA

THREE MONTHS ENDED AUGUST 31,

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

THREE MONTHS ENDED NOVEMBER 30, SIX MONTHS ENDED NOVEMBER 30,

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

Footwear $ 3,542 $ 3,236 9 % 9 % $ 6,761 $ 6,448 5 % 5 %

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Gross profit 2,298 2,283 1 % 4,421 4,482 -1 %

Gross margin 42.3 % 45.6 % -330 bps

Gross margin 40.8 % 44.1 % -330 bps 41.5 % 44.8 % -330 bps

Demand creation expense 473 382 24 % 915 834 10 %

3 unchanged sentences

EARNINGS BEFORE INTEREST AND TAXES $ 1,261 $ 1,371 -8 % $ 2,395 $ 2,587 -7 %

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

SECOND QUARTER OF FISCAL 2026 COMPARED TO SECOND QUARTER OF FISCAL 2025

• North America revenues increased 9% 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.

Wholesale revenues increased 24%, primarily driven by the impacts of our marketplace management actions in both the current and prior year, expanded distribution in the current year, as well as shipment growth to existing partners.

NIKE Direct revenues decreased 10% due to declines in digital sales of 16% and declines in store sales of 2%.

Comparable store sales decreased 1%.

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

Unit sales of footwear increased 14%, 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.

Lower ASP per pair was primarily due to channel mix, partially offset by product mix and strategic pricing.

• Apparel revenues increased 7% on a currency-neutral basis.

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.

Unit sales of apparel increased 3%, while higher ASP per unit contributed approximately 4 percentage points of apparel revenue growth.

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

Reported EBIT decreased 8% reflecting higher reported revenues more than offset by:

• Gross margin contraction of 330 basis points, primarily due to new tariffs, partially offset by lower warehousing and logistics costs due to channel mix, and lower inventory obsolescence reserves.

ASP was flat as product mix and strategic pricing were offset primarily by channel mix.

• Demand creation expense increased 24% due to higher brand marketing expense and higher sports marketing expense.

• Operating overhead expense increased 6% due to higher other administrative costs and higher wage-related expense.

FIRST SIX MONTHS OF FISCAL 2026 COMPARED TO FIRST SIX MONTHS OF FISCAL 2025

• North America revenues increased 7% on a currency-neutral basis.

Wholesale revenues increased 18%, primarily driven by the impacts of our marketplace management actions and expanded distribution in the current year.

NIKE Direct revenues decreased 6% due to declines in digital sales of 13% and declines in store sales of 1%.

Comparable store sales decreased 1%.

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

Unit sales of footwear increased 10%, 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, partially offset by strategic pricing.

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

Unit sales of apparel increased 9%, while ASP per unit was flat as product mix and lower discounts were primarily offset by channel mix.

Reported EBIT decreased 7% reflecting higher reported revenues more than offset by 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 due to channel mix and lower inventory obsolescence reserves.

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

• Demand creation expense increased 10% due to higher brand marketing expense and higher sports marketing expense.

• Operating overhead expense increased 5% due to higher wage-related expense and higher other administrative costs.

EUROPE, MIDDLE EAST & AFRICA

THREE MONTHS ENDED AUGUST 31,

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

THREE MONTHS ENDED NOVEMBER 30, SIX MONTHS ENDED NOVEMBER 30,

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

Footwear $ 2,012 $ 1,982 2 % -2 % $ 4,033 $ 3,934 3 % -2 %

7 unchanged sentences

Gross profit 1,467 1,515 -3 % 2,898 2,963 -2 %

Gross margin 43.0 % 46.1 % -310 bps

Gross margin 43.2 % 45.9 % -270 bps 43.1 % 46.0 % -290 bps

Demand creation expense 334 313 7 % 647 603 7 %

3 unchanged sentences

EARNINGS BEFORE INTEREST AND TAXES $ 733 $ 831 -12 % $ 1,468 $ 1,623 -10 %

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

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

SECOND QUARTER OF FISCAL 2026 COMPARED TO SECOND QUARTER OF FISCAL 2025

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

Wholesale revenues were flat.

NIKE Direct revenues decreased 3% due to declines in digital sales of 2% and declines in store sales of 5%.

Comparable store sales decreased 3%.

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

Unit sales of footwear were flat, while lower ASP per pair reduced footwear revenues by approximately 2 percentage points.

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

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

Unit sales of apparel increased 7%, while lower ASP per unit reduced apparel revenues by approximately 6 percentage points.

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

Reported EBIT decreased 12% reflecting higher reported revenues more than offset by:

• Gross margin contraction of 270 basis points, primarily due to lower ASP, reflecting higher discounts and higher product costs, partially offset by lower warehousing and logistics costs and lower inventory obsolescence reserves.

• Demand creation expense increased 7% primarily due to higher brand marketing expense and unfavorable changes in foreign currency exchange rates.

• Operating overhead expense increased 7% primarily due to unfavorable changes in foreign currency exchange rates.

FIRST SIX MONTHS OF FISCAL 2026 COMPARED TO FIRST SIX MONTHS OF FISCAL 2025

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

Wholesale revenues increased 2%.

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

NIKE Direct revenues decreased 4% due to declines in digital sales of 7% and declines in store sales of 2%.

Comparable store sales increased 1%.

1 unchanged sentence

Unit sales of footwear increased 2%, while lower ASP per pair reduced footwear revenues by approximately 4 percentage points.

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

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

• Apparel revenues increased 3% on a currency-neutral basis.

Unit sales of apparel increased 8%, while lower ASP per unit reduced apparel revenues by approximately 5 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.

Lower ASP per unit was primarily due to higher discounts.

Reported EBIT decreased 10% reflecting higher reported revenues more than offset by:

• Gross margin contraction of 290 basis points, primarily due to lower ASP, reflecting higher discounts and higher product costs, partially offset by lower warehousing and logistics costs and lower inventory obsolescence reserves.

• Demand creation expense increased 7% due to unfavorable changes in foreign currency exchange rates and higher sports marketing expense, partially offset by lower brand marketing expense, reflecting higher investment in key sports events in the prior year.

• Operating overhead expense increased 6% primarily due to unfavorable changes in foreign currency exchange rates.

GREATER CHINA

THREE MONTHS ENDED AUGUST 31,

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

THREE MONTHS ENDED NOVEMBER 30, SIX MONTHS ENDED NOVEMBER 30,

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

Footwear $ 954 $ 1,203 -21 % -20 % $ 2,063 $ 2,449 -16 % -16 %

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836 957 -13 % 1,634 1,812 -10 %

47.2 % 48.7 % -150 bps

587 754 -22 % 1,301 1,565 -17 %

41.3 % 44.1 % -280 bps 44.3 % 46.3 % -200 bps

Demand creation expense

145 135 7 % 244 249 -2 %

Operating overhead expense

252 252 0 % 490 492 0 %

Total selling and administrative expense

397 387 3 % 734 741 -1 %

Other segment items

(1) (8) — (1) (53) —

EARNINGS BEFORE INTEREST AND TAXES $ 191 $ 375 -49 % $ 568 $ 877 -35 %

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

SECOND QUARTER OF FISCAL 2026 COMPARED TO SECOND QUARTER OF FISCAL 2025

• Greater China revenues decreased 16% on a currency-neutral basis.

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• Footwear revenues decreased 20% on a currency-neutral basis.

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 footwear decreased 20%, while ASP per pair was flat as channel mix was offset by lower discounts.

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

Unit sales of apparel decreased 12%, while higher ASP per unit increased apparel revenues by approximately 6 percentage points.

Higher ASP per unit was primarily due to product mix, lower discounts and channel mix.

Reported EBIT decreased 49% reflecting lower reported revenues and the following:

• Gross margin contraction of 280 basis points, primarily due to higher inventory obsolescence reserves and higher product costs, driven by product mix, partially offset by higher ASP.

• Demand creation expense increased 7%, primarily due to higher brand marketing expense.

• Operating overhead expense was flat as higher wage-related expense was offset by lower other administrative costs.

FIRST SIX MONTHS OF FISCAL 2026 COMPARED TO FIRST SIX MONTHS OF FISCAL 2025

• Greater China revenues decreased 13% on a currency-neutral basis.

Wholesale revenues decreased 12%.

NIKE Direct revenues decreased 15% due to declines in digital sales of 33% and declines in store sales of 5%.

Comparable store sales decreased 6%.

• Footwear revenues decreased 16% on a currency-neutral basis.

Unit sales of footwear decreased 15%, while lower ASP per pair reduced footwear revenues by approximately 1 percentage point.

Lower ASP per pair was primarily due to channel mix.

• Apparel revenues decreased 3% on a currency-neutral basis.

Unit sales of apparel decreased 6%, while higher ASP per unit contributed approximately 3 percentage points of apparel revenue growth.

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 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.

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

• Gross margin contraction of 200 basis points, primarily due to higher inventory obsolescence reserves and higher product costs, driven by product mix.

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

• Operating overhead expense was flat as lower other administrative costs were offset by higher wage-related expense.

ASIA PACIFIC & LATIN AMERICA

THREE MONTHS ENDED AUGUST 31,

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

THREE MONTHS ENDED NOVEMBER 30, SIX MONTHS ENDED NOVEMBER 30,

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

Footwear $ 1,151 $ 1,234 -7 % -7 % $ 2,212 $ 2,286 -3 % -3 %

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Gross profit 703 767 -8 % 1,355 1,447 -6 %

Gross margin 43.8 % 46.5 % -270 bps

Gross margin 42.2 % 44.0 % -180 bps 42.9 % 45.1 % -220 bps

Demand creation expense 109 98 11 % 206 188 10 %

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EARNINGS BEFORE INTEREST AND TAXES $ 389 $ 460 -15 % $ 739 $ 862 -14 %

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.

SECOND QUARTER OF FISCAL 2026 COMPARED TO SECOND QUARTER OF FISCAL 2025

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

Wholesale revenues decreased 3%.

NIKE Direct revenues decreased 5% due to declines in digital sales of 10%, partially offset by an increase in store sales of 1%.

Comparable store sales decreased 3%.

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

Unit sales of footwear decreased 7%, while ASP per pair was flat as product mix and strategic pricing were offset primarily by higher discounts.

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

Unit sales of apparel increased 7%, while lower ASP per unit reduced apparel revenues by approximately 1 percentage point.

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

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

• Gross margin contraction of approximately 180 basis points, primarily due to higher product costs and unfavorable changes in standard foreign currency exchange rates.

• Demand creation expense increased 11%, primarily due to higher sports marketing expense and higher brand marketing expense.

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

FIRST SIX MONTHS OF FISCAL 2026 COMPARED TO FIRST SIX MONTHS OF FISCAL 2025

• APLA revenues decreased 2% on a currency-neutral basis primarily due to lower revenues in SEA&I, Korea and Japan, partially offset by higher revenues in CASA and Pacific.

Wholesale revenues increased 1%.

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Comparable store sales decreased 5%.

• 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.

• Footwear revenues decreased 3% on a currency-neutral basis.

Unit sales of footwear decreased 2%, 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 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 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.

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

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

• Gross margin contraction of approximately 220 basis points, primarily due to lower ASP, unfavorable changes in standard foreign currency exchange rates and higher product costs.

• Demand creation expense increased 10%, primarily due to higher sports marketing expense and higher brand marketing expense.

• Operating overhead expense increased 4%, primarily due to higher wage-related expense.

GLOBAL BRAND DIVISIONS

THREE MONTHS ENDED AUGUST 31,

THREE MONTHS ENDED NOVEMBER 30, SIX MONTHS ENDED NOVEMBER 30,

(Dollars in millions)

2025 2024 % CHANGE

2025 2024 % CHANGE 2025 2024 % CHANGE

Revenues $ 9 $ 13 -31 % $ 18 $ 27 -33 %

Cost of Sales 152 147 3 % 320 300 7 %

(159) (139) -14 %

Gross profit (143) (134) -7 % (302) (273) -11 %

Demand creation expense 185 147 26 % 388 389 0 %

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EARNINGS (LOSS) BEFORE INTEREST AND TAXES $ (1,072) $ (1,133) 5 % $ (2,264) $ (2,360) 4 %

$ (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.

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,

SECOND QUARTER OF FISCAL 2026 COMPARED TO SECOND QUARTER OF FISCAL 2025

Global Brand Divisions' loss before interest and taxes decreased 5%, primarily due to lower Operating overhead expense, partially offset by higher Demand creation expense.

Demand creation expense increased 26%, primarily due to higher brand marketing expense and higher sports marketing expense.

Operating overhead expense decreased 13%, primarily due to lower wage-related expense and lower other administrative costs.

FIRST SIX MONTHS OF FISCAL 2026 COMPARED TO FIRST SIX MONTHS OF FISCAL 2025

Global Brand Divisions' loss before interest and taxes decreased 4%, primarily due to lower Operating overhead expense.

Demand creation expense was flat as lower brand marketing expense, reflecting higher investment in key sports events in the prior year, was offset by higher sports marketing expense.

Operating overhead expense decreased 7%, primarily due to lower other administrative costs and lower wage-related expense.

THREE MONTHS ENDED NOVEMBER 30, SIX MONTHS ENDED NOVEMBER 30,

(Dollars in millions)

2025 2024 % CHANGE % CHANGE EXCLUDING CURRENCY CHANGES

2025 2024 % CHANGE % CHANGE EXCLUDING CURRENCY CHANGES 2025 2024 % CHANGE % CHANGE EXCLUDING CURRENCY CHANGES

Footwear $ 255 $ 364 -30 % -31 % $ 574 $ 800 -28 % -29 %

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124 207 -40 % 297 475 -37 %

Gross margin 47.3 % 53.5 % -620 bps

Gross margin 41.3 % 48.3 % -700 bps 44.6 % 51.1 % -650 bps

Demand creation expense

24 43 -44 % 57 78 -27 %

Operating overhead expense

1 unchanged sentence

Total selling and administrative expense

128 154 -17 % 263 302 -13 %

Other segment items

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

— — — (1) (1) —

EARNINGS (LOSS) BEFORE INTEREST AND TAXES $ (4) $ 53 -108 % $ 35 $ 174 -80 %

(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.

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

SECOND QUARTER OF FISCAL 2026 COMPARED TO SECOND QUARTER OF FISCAL 2025

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

2 unchanged sentences

• Wholesale revenues decreased 34% 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 620 basis points, primarily due to lower ASP and higher warehousing and logistics costs.

Lower ASP primarily reflects higher discounts and product mix.

• Direct to consumer revenues decreased 29% on a currency-neutral basis, reflecting reduced traffic in North America and Western Europe.

Reported EBIT decreased 108% reflecting lower reported revenues and the following:

• Gross margin contraction of approximately 700 basis points, primarily due to lower ASP, reflecting higher discounts and higher product costs.

• Demand creation expense decreased 44%, 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)

2025 2024 % CHANGE

• Operating overhead expense decreased 6%, primarily due to lower other administrative costs.

FIRST SIX MONTHS OF FISCAL 2026 COMPARED TO FIRST SIX MONTHS OF FISCAL 2025

• Converse revenues decreased 29% on a currency-neutral basis driven by declines in all territories.

Unit sales decreased 24%, 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 32% on a currency-neutral basis, driven by declines in all territories.

• Direct to consumer revenues decreased 27% on a currency-neutral basis, reflecting reduced traffic in North America and Western Europe.

Reported EBIT decreased 80% reflecting lower reported revenues and the following:

• Gross margin contraction of approximately 650 basis points, primarily due to lower ASP, reflecting higher discounts and higher product costs.

• Demand creation expense decreased 27%, primarily due to lower brand marketing expense.

• Operating overhead expense decreased 8%, primarily due to lower other administrative costs.

THREE MONTHS ENDED NOVEMBER 30, SIX MONTHS ENDED NOVEMBER 30,

(Dollars in millions) 2025 2024 % CHANGE 2025 2024 % CHANGE

Revenues $ 3 $ (25) — $ (5) $ (48) —

Cost of Sales (6) (22) — (23) (35) —

Gross profit 9 (3) — 18 (13) —

Demand creation expense 3 4 -25 % 4 7 -43 %

3 unchanged sentences

EARNINGS (LOSS) BEFORE INTEREST AND TAXES $ (508) $ (565) 10 % $ (1,047) $ (1,107) 5 %

$ (539) $ (542) 1 %

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

7 unchanged sentences

and certain other foreign currency derivative instruments.

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

SECOND QUARTER OF FISCAL 2026 COMPARED TO SECOND QUARTER OF FISCAL 2025

Corporate's loss before interest and taxes decreased $57 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 of $61 million in Operating overhead expense primarily related to lower wage-related expense and lower other administrative costs;

• a favorable change in net foreign currency gains and losses of $20 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;

1 unchanged sentence

• an unfavorable change of $28 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.

FIRST SIX MONTHS OF FISCAL 2026 COMPARED TO FIRST SIX MONTHS OF FISCAL 2025

Corporate's loss before interest and taxes decreased $60 million, primarily due to the following:

• a favorable change of $81 million in Operating overhead expense primarily related to lower other administrative costs and lower wage-related expense;

• a favorable change in net foreign currency gains and losses of $37 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 $65 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.

FOREIGN CURRENCY EXPOSURES AND HEDGING PRACTICES

7 unchanged sentences

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

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.

As of and for the three and six months ended November 30, 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 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.

The impact of foreign exchange rate fluctuations on the translation of our consolidated Revenues was a benefit of approximately $123 million and $336 million for the three and six months ended November 30, 2025, respectively.

The impact of foreign exchange rate fluctuations on the translation of our Income before income taxes was a benefit of approximately $27 million and $81 million for the three and six months ended November 30, 2025, respectively.

MANAGING TRANSLATIONAL EXPOSURES

9 unchanged sentences

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.

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 no impact on our Income before income taxes for the three months ended November 30, 2025, and a favorable impact of approximately $17 million on our Income before income taxes for the six months ended November 30, 2025.

LIQUIDITY AND CAPITAL RESOURCES

CASH FLOW ACTIVITY

THREE MONTHS ENDED AUGUST 31,

SIX MONTHS ENDED NOVEMBER 30,

(Dollars in millions)

10 unchanged sentences

Cash provided by operations decreased $642 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).

This was driven by a decrease of $580 million in Net income, adjusted for non-cash items, and a decrease of $62 million related to changes in certain working capital components and other assets.

The change in working capital was primarily driven by unfavorable changes in Accounts payable and Accounts receivable.

The change in Accounts payable was primarily due to lower inventory purchases and the timing of payments, and the change in Accounts receivable was primarily due to increased wholesale revenues.

This was partially offset by a change in Inventories due to lower purchases partially offset by increases in product costs, inclusive of higher tariffs in North America.

Cash used by investing activities decreased $132 million, primarily driven by the net change in short-term investments (including sales, maturities and purchases), partially offset by increased additions to Property, plant and equipment.

Cash used by financing activities decreased $1,893 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.

During the first six months of fiscal 2026, we purchased a total of 1.8 million shares of NIKE's Class B Common Stock for $122.4 million (an average price of $67.63 per share) under the four-year, $18 billion share repurchase program approved by the Board of Directors in June 2022.

As of November 30, 2025, we had 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.

No shares were repurchased during the quarter ended November 30, 2025.

We paused repurchases under this program during the first quarter of fiscal 2026, 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.

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

CAPITAL RESOURCES

2 unchanged sentences

The Shelf expires on July 17, 2028.

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

As of November 30, 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 A2 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 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.

In November 2025, Moody's Investor Services downgraded our debt rating from A1 to A2.

Despite the downgrade, our facility fees and interest rates remain unchanged.

As of November 30, 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 November 30, 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 August 31, 2025, we did not have any borrowings outstanding under our $3 billion program.

As of and for the three months ended November 30, 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.

1 unchanged sentence

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 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.

As of November 30, 2025, we had Cash and equivalents and Short-term investments totaling $8.3 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.

1 unchanged sentence

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

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.

While individual securities have varying durations, as of November 30, 2025, the weighted average days to maturity of our cash equivalents and short-term investments portfolio was 115 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 for the next twelve months and beyond.

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

CONTRACTUAL OBLIGATIONS

Refer to Note 11 — Commitments and Contingencies in the accompanying Notes to the Unaudited Condensed Consolidated Financial Statements for additional information related to our bank guarantees and letters of credit.

OFF-BALANCE SHEET ARRANGEMENTS

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.

As of November 30, 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

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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