What changed in this filing

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Item 2. Management’s Discussion and Analysis

2026-04-01 compared with 2025-12-30 · 249 added, 225 removed, 458 unchanged (51% of the section changed)

7 unchanged sentences

QUARTERLY FINANCIAL HIGHLIGHTS

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.

Revenues were $11.3 billion for the third quarter of fiscal 2026, flat on a reported basis and down 3% on a currency-neutral basis.

• NIKE Brand wholesale revenues were $6.5 billion for the third quarter of fiscal 2026 compared to $6.2 billion for the third quarter of fiscal 2025.

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

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

• Gross margin for the third quarter of fiscal 2026 decreased 130 basis points to 40.2% primarily due to higher tariffs in North America.

• Inventories as of February 28, 2026, were $7.5 billion, flat compared to May 31, 2025, primarily reflecting an increase in units, offset by product mix.

• We returned approximately $609 million to our shareholders in the third quarter of fiscal 2026 through dividends.

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, 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.

9 unchanged sentences

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

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.

Our reportable operating segments are at different stages of progress and we expect to complete these actions by the end of December 2026.

The timing of financial impacts has and will continue to vary by segment.

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.

We expect negative impacts from Greater China to continue throughout fiscal 2027.

While these product, marketplace and brand management actions taken across our portfolio have had, and in the future may have, a negative impact on our Revenues and overall profitability, we believe they will reignite brand momentum and reposition our business to drive long-term shareholder value.

We have also been evaluating opportunities to operate more efficiently and profitably through realigning costs across our supply chain and technology to serve an integrated marketplace.

For the three and nine months ended February 28, 2026, we recognized pre-tax charges of $230 million and $304 million, respectively, primarily associated with employee severance costs.

We continue to evaluate opportunities and may take additional actions which could lead to additional charges in future quarters.

For more information, refer to Note 13 — Severance and Other Employee Costs within the accompanying Notes to the Unaudited Condensed Consolidated Financial Statements.

OTHER MATTERS

On February 20, 2026, the U.S.

Supreme Court ruled that U.S.

tariffs imposed under the International Emergency Economic Powers Act ("IEEPA") on goods imported into the U.S.

were unauthorized.

Total IEEPA tariffs paid as of the date of this report is approximately $1.0 billion.

The ruling did not address potential refunds, and therefore the ultimate availability, timing and amount of any potential refunds of these tariffs is highly uncertain.

As such, we have determined that potential recovery of any funds is not probable.

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

and other countries that could impact our financial position, results of operations and cash flows.

USE OF NON-GAAP FINANCIAL MEASURES

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Additionally, management believes these non-GAAP financial measures provide investors with additional financial information that should be considered when assessing our underlying business performance and trends.

Earnings Before Interest and Taxes ("EBIT"):

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

Earnings Before Interest and Taxes ("EBIT") and EBIT margin:

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

EBIT divided by total NIKE, Inc.

Revenues, respectively.

Total NIKE, Inc.

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,

EBIT and our EBIT margin calculations for the three and nine months ended February 28, 2026 and February 28, 2025 are as follows:

THREE MONTHS ENDED FEBRUARY 28, NINE MONTHS ENDED FEBRUARY 28,

(Dollars in millions)

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

Interest (income) expense, net

2026 2025 2026 2025

Net income $ 520 $ 794 $ 2,039 $ 3,008

Income tax expense 130 50 532 559

EARNINGS BEFORE INTEREST AND TAXES

Interest (income) expense, net

(15) (18) (42) (85)

Calculated as total NIKE, Inc.

EBIT divided by total NIKE, Inc.

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

Earnings before interest and taxes $ 990 $ 1,392 $ 1,894 $ 2,656

EBIT $ 635 $ 826 $ 2,529 $ 3,482

Total NIKE, Inc.

Revenues 11,279 11,269 35,426 35,212

8.0 % 11.3 % 7.8 % 11.1 %

Net income margin 4.6 % 7.0 % 5.8 % 8.5 %

EBIT margin 5.6 % 7.3 % 7.1 % 9.9 %

Currency-neutral revenues:

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RESULTS OF OPERATIONS

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

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

THREE MONTHS ENDED FEBRUARY 28, NINE MONTHS ENDED FEBRUARY 28,

(Dollars in millions, except per share data)

2026 2025 % CHANGE 2026 2025 % CHANGE

Revenues $ 11,279 $ 11,269 0 % $ 35,426 $ 35,212 1 %

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CONSOLIDATED OPERATING RESULTS

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

THREE MONTHS ENDED FEBRUARY 28, NINE MONTHS ENDED FEBRUARY 28,

(Dollars in millions)

25 unchanged sentences

(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.

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.

THIRD QUARTER OF FISCAL 2026 COMPARED TO THIRD QUARTER OF FISCAL 2025

Revenues for the third quarter of fiscal 2026 were $11.3 billion, flat on a reported basis.

On a currency-neutral basis, 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 decreased 3%, primarily due to lower revenues in EMEA, Greater China and Converse, which 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.

Higher revenues in North America increased NIKE, Inc.

Revenues by approximately 1 percentage point.

• NIKE Brand revenues increased 1% on a reported basis and decreased 2% on a 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.

Unit sales of footwear decreased 2%, while higher average selling price ("ASP") per pair contributed approximately 1 percentage point of footwear revenue growth.

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

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

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

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

• NIKE Brand wholesale revenues were $6.5 billion for the third quarter of fiscal 2026, up 5% on a reported basis and up 1% on a currency-neutral basis.

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

• NIKE Direct revenues were $4.5 billion for the third quarter of fiscal 2026, down 4% on a reported basis and down 7% on a currency-neutral basis, due to declines in NIKE Brand Digital sales of 9% and declines in NIKE store sales of 5%.

NIKE Brand Digital sales were $2.3 billion for the third quarter of fiscal 2026 compared to $2.5 billion for the third quarter of fiscal 2025, with declines primarily due to reduced traffic.

Comparable store sales decreased 5%.

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.

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

Revenues for the first nine months of fiscal 2026 were $35.4 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, Converse and APLA, which 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.

1 unchanged sentence

Revenues by approximately 2 percentage points.

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

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

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

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

Unit sales of footwear were flat, while lower 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 2% on a currency-neutral basis.

Unit sales of apparel increased 7%, while lower ASP per unit reduced apparel revenues by approximately 2 percentage points.

Unit sales of apparel increased 3%, 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.

• 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 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.

• NIKE Brand wholesale revenues were $20.8 billion for the first nine months of fiscal 2026, up 7% on a reported basis and up 5% on a currency-neutral basis.

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

• NIKE Direct revenues were $13.7 billion for the first nine months of fiscal 2026, down 5% on a reported basis and down 7% on a currency-neutral basis, due to declines in NIKE Brand Digital sales of 12% and declines in NIKE store sales of 3%.

NIKE Brand Digital sales were $6.8 billion for the first nine months of fiscal 2026 compared to $7.6 billion for the first nine months of fiscal 2025, with declines primarily due to reduced traffic.

Comparable store sales decreased 3%.

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

THREE MONTHS ENDED FEBRUARY 28, NINE MONTHS ENDED FEBRUARY 28,

(Dollars in millions)

2 unchanged sentences

Gross margin 40.2 % 41.5 % -130 bps 41.0 % 43.5 % -250 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:

THIRD QUARTER OF FISCAL 2026 COMPARED TO THIRD QUARTER OF FISCAL 2025

Consolidated gross margin was 130 basis points lower than the prior year due to:

• Higher NIKE Brand product costs (decreasing gross margin approximately 270 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 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;

• Higher NIKE Brand ASP (increasing gross margin approximately 80 basis points), primarily due to strategic pricing and product mix;

• Lower other costs (increasing gross margin approximately 60 basis points), primarily due to lower inventory obsolescence reserves;

• Lower warehousing and logistics costs (increasing gross margin approximately 20 basis points);

• Favorable changes in net foreign currency exchange rates, including hedges (increasing gross margin approximately 10 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:

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

Consolidated gross margin was 250 basis points lower than the prior year due to:

• Higher NIKE Brand product costs (decreasing gross margin approximately 240 basis points), primarily due to higher tariffs in North America;

4 unchanged sentences

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

• Lower other costs (increasing gross margin approximately 30 basis points), primarily due to lower inventory obsolescence reserves.

TOTAL SELLING AND ADMINISTRATIVE EXPENSE

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

THREE MONTHS ENDED FEBRUARY 28, NINE MONTHS ENDED FEBRUARY 28,

(Dollars in millions)

10 unchanged sentences

(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.

THIRD QUARTER OF FISCAL 2026 COMPARED TO THIRD QUARTER OF FISCAL 2025

Demand creation expense was flat as higher sports marketing expense and unfavorable changes in foreign currency exchange rates were offset by lower brand marketing expense.

Changes in foreign currency exchange rates increased Demand creation expense by approximately 3 percentage points.

Operating overhead expense increased 3% due to higher wage-related expense, driven by employee severance costs, and unfavorable changes in foreign currency exchange rates, partially offset by lower other administrative costs.

Changes in foreign currency exchange rates increased Operating overhead expense by approximately 2 percentage points.

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

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

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

Operating overhead expense was flat as lower other administrative costs were offset by higher wage-related expense, driven by employee severance costs, and unfavorable changes in foreign currency exchange rates.

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

OTHER (INCOME) EXPENSE, NET

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

THREE MONTHS ENDED FEBRUARY 28, NINE MONTHS ENDED FEBRUARY 28,

(Dollars in millions)

2 unchanged sentences

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.

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,

THIRD QUARTER OF FISCAL 2026 COMPARED TO THIRD QUARTER OF FISCAL 2025

Other (income) expense, net increased from $38 million of other income, net, to $82 million of other income, net, primarily due to settlements of legal matters, partially offset by an unfavorable net change in foreign currency conversion gains and losses, including hedges.

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

Other (income) expense, net decreased from $101 million of other income, net, to $43 million of other income, net, primarily due to an unfavorable net change in foreign currency conversion gains and losses, including hedges, partially offset by settlements of legal matters.

THREE MONTHS ENDED FEBRUARY 28, NINE MONTHS ENDED FEBRUARY 28,

2026 2025 % CHANGE 2026 2025 % CHANGE

Effective tax rate 20.0 % 5.9 % 1,410 bps 20.7 % 15.7 % 500 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.

THIRD QUARTER OF FISCAL 2026 COMPARED TO THIRD QUARTER OF FISCAL 2025

Our effective tax rate increased from 5.9% to 20.0%, primarily due to a prior year one-time, non-cash deferred tax benefit provided by U.S.

tax regulations related to foreign currency gains and losses.

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

Our effective tax rate increased from 15.7% to 20.7%, primarily due to a prior year one-time, non-cash deferred tax benefit provided by U.S.

tax regulations related to foreign currency gains and losses.

For additional information, refer to Note 5 — Income Taxes within the accompanying Notes to the Unaudited Condensed Consolidated Financial Statements.

2 unchanged sentences

The breakdown of Revenues is as follows:

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

THREE MONTHS ENDED FEBRUARY 28, NINE MONTHS ENDED FEBRUARY 28,

(Dollars in millions)

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The breakdown of EBIT is as follows:

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

THREE MONTHS ENDED FEBRUARY 28, NINE MONTHS ENDED FEBRUARY 28,

(Dollars in millions)

10 unchanged sentences

TOTAL NIKE, INC.

EARNINGS BEFORE INTEREST AND TAXES (1)

635 826 -23 % 2,529 3,482 -27 %

EBIT margin (1)

8.0 % 11.3 % 7.8 % 11.1 %

Interest (income) expense, net (15) (18) — (42) (85) —

Income tax expense 130 50 160 % 532 559 -5 %

NET INCOME $ 520 $ 794 -35 % $ 2,039 $ 3,008 -32 %

Total NIKE, Inc.

INCOME BEFORE INCOME TAXES $ 999 $ 1,416 -29 % $ 1,921 $ 2,723 -29 %

Revenues $ 11,279 $ 11,269 0 % $ 35,426 $ 35,212 1 %

Net income margin 4.6 % 7.0 % 5.8 % 8.5 %

EBIT margin (1)

5.6 % 7.3 % 7.1 % 9.9 %

(1) Total NIKE Brand EBIT, Total NIKE, Inc.

2 unchanged sentences

NORTH AMERICA

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

THREE MONTHS ENDED FEBRUARY 28, NINE MONTHS ENDED FEBRUARY 28,

(Dollars in millions)

2026 2025 % CHANGE % CHANGE EXCLUDING CURRENCY CHANGES 2026 2025 % CHANGE % CHANGE EXCLUDING CURRENCY CHANGES

Footwear $ 3,326 $ 3,132 6 % 6 % $ 10,087 $ 9,580 5 % 5 %

13 unchanged sentences

EARNINGS BEFORE INTEREST AND TAXES $ 981 $ 1,103 -11 % $ 3,376 $ 3,690 -9 %

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

THIRD QUARTER OF FISCAL 2026 COMPARED TO THIRD QUARTER OF FISCAL 2025

• North America revenues increased 3% 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.

Wholesale revenues increased 11%, primarily driven by the impacts of our marketplace management actions in both the current and prior year and expanded distribution in the current year.

NIKE Direct revenues decreased 5% due to declines in digital sales of 7% and declines in store sales of 1%.

1 unchanged sentence

• Footwear revenues increased 6% 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, partially offset by product mix and strategic pricing.

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

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.

Unit sales of footwear increased 4%, while higher ASP per pair contributed approximately 2 percentage points of footwear revenue growth.

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

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

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

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

Reported EBIT decreased 11% 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

• Gross margin contraction of 350 basis points, primarily due to higher tariffs, partially offset by higher ASP and lower inventory obsolescence reserves.

Higher ASP primarily reflects strategic pricing and product mix, partially offset by channel mix.

• Demand creation expense increased 4% due to higher sports marketing expense, partially offset by lower brand marketing expense.

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

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

• North America revenues increased 5% 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.

Wholesale revenues increased 15%, primarily driven by expanded distribution in the current year and the impacts of our marketplace management actions in both the current and prior year.

NIKE Direct revenues decreased 6% due to declines in digital sales of 11% and declines in store sales of 1%.

2 unchanged sentences

Unit sales of footwear increased 8%, 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 strategic pricing.

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

• Apparel revenues increased 5% 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.

Unit sales of apparel increased 5%, while ASP per unit was flat as channel mix and higher discounts were offset primarily by product mix.

Reported EBIT decreased 9% 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.

• Gross margin contraction of 340 basis points, primarily due to higher 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, partially offset by strategic pricing.

• Demand creation expense increased 8% due to higher sports marketing expense and higher brand marketing expense.

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

EUROPE, MIDDLE EAST & AFRICA

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

THREE MONTHS ENDED FEBRUARY 28, NINE MONTHS ENDED FEBRUARY 28,

(Dollars in millions)

2026 2025 % CHANGE % CHANGE EXCLUDING CURRENCY CHANGES 2026 2025 % CHANGE % CHANGE EXCLUDING CURRENCY CHANGES

Footwear $ 1,789 $ 1,742 3 % -7 % $ 5,822 $ 5,676 3 % -3 %

13 unchanged sentences

EARNINGS BEFORE INTEREST AND TAXES $ 515 $ 480 7 % $ 1,983 $ 2,103 -6 %

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

THIRD QUARTER OF FISCAL 2026 COMPARED TO THIRD QUARTER OF FISCAL 2025

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

Wholesale revenues were flat.

Wholesale revenues decreased 4%.

NIKE Direct revenues decreased 13% due to declines in digital sales of 6% and declines in store sales of 20%.

1 unchanged sentence

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

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

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 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%.

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

Unit sales of apparel decreased 8%, while ASP per unit was flat as higher discounts were offset primarily by channel mix.

Reported EBIT increased 7% reflecting higher reported revenues and the following:

• Gross margin expansion of 100 basis points, primarily due to higher other product costs in the prior year, partially offset by higher discounts and unfavorable changes in standard foreign currency exchange rates.

• Demand creation expense increased 11%, primarily due to unfavorable changes in foreign currency exchange rates and higher sports marketing expense.

• Operating overhead expense increased 2% due to unfavorable changes in foreign currency exchange rates, partially offset by lower other administrative costs.

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

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

Wholesale revenues were flat.

NIKE Direct revenues decreased 7% due to declines in digital sales of 6% and declines in store sales of 7%.

Comparable store sales increased 1%.

Comparable store sales decreased 6%.

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

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

Unit sales of footwear were flat, while lower ASP per pair reduced footwear revenues by approximately 3 percentage points.

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

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

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

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

1 unchanged sentence

Reported EBIT decreased 6% 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.

• Gross margin contraction of 170 basis points, primarily due to lower ASP, reflecting higher discounts, and unfavorable changes in standard foreign currency exchange rates, partially offset by lower warehousing and logistics costs.

• Demand creation expense increased 8% 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.

• Operating overhead expense increased 5%, primarily due to unfavorable changes in foreign currency exchange rates, partially offset by lower other administrative costs.

GREATER CHINA

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

THREE MONTHS ENDED FEBRUARY 28, NINE MONTHS ENDED FEBRUARY 28,

(Dollars in millions)

2026 2025 % CHANGE % CHANGE EXCLUDING CURRENCY CHANGES 2026 2025 % CHANGE % CHANGE EXCLUDING CURRENCY CHANGES

Footwear $ 1,187 $ 1,282 -7 % -10 % $ 3,250 $ 3,731 -13 % -14 %

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776 780 -1 % 2,077 2,345 -11 %

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

48.0 % 45.0 % 300 bps 45.6 % 45.9 % -30 bps

8 unchanged sentences

EARNINGS BEFORE INTEREST AND TAXES $ 467 $ 421 11 % $ 1,035 $ 1,298 -20 %

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

THIRD QUARTER OF FISCAL 2026 COMPARED TO THIRD QUARTER OF FISCAL 2025

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

Wholesale revenues decreased 13%.

NIKE Direct revenues decreased 18% due to declines in digital sales of 36% and declines in store sales of 5%.

NIKE Direct revenues decreased 5% due to declines in digital sales of 21%, partially offset by an increase in store sales of 1%.

Comparable store sales decreased 1%.

• Footwear revenues decreased 10% 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.

Unit sales of footwear decreased 10%, while ASP per pair was flat as lower discounts were offset primarily by product mix and channel mix.

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

Unit sales of apparel decreased 9%, while higher ASP per unit increased apparel revenues by approximately 2 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

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

Reported EBIT increased 11% reflecting lower reported revenues more than offset by:

• Gross margin expansion of 300 basis points, primarily due to lower inventory obsolescence reserves.

• Demand creation expense decreased 21%, primarily due to lower brand marketing expense.

• Operating overhead expense was flat as lower other administrative costs were offset primarily by unfavorable changes in foreign currency exchange rates.

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

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

4 unchanged sentences

Unit sales of footwear decreased 13%, while lower ASP per pair reduced footwear revenues by approximately 1 percentage point.

Lower ASP per pair was primarily due to channel mix.

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

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

Unit sales of apparel decreased 7%, 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 higher discounts.

Higher ASP per unit was primarily due to product mix.

Reported EBIT decreased 20% 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.

• Gross margin contraction of 30 basis points, primarily due to higher product costs, driven by product mix, partially offset by lower inventory obsolescence reserves.

• Demand creation expense decreased 8%, primarily due to lower brand marketing expense.

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

ASIA PACIFIC & LATIN AMERICA

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

THREE MONTHS ENDED FEBRUARY 28, NINE MONTHS ENDED FEBRUARY 28,

(Dollars in millions)

2026 2025 % CHANGE % CHANGE EXCLUDING CURRENCY CHANGES 2026 2025 % CHANGE % CHANGE EXCLUDING CURRENCY CHANGES

Footwear $ 1,051 $ 1,052 0 % -3 % $ 3,263 $ 3,338 -2 % -3 %

13 unchanged sentences

EARNINGS BEFORE INTEREST AND TAXES $ 332 $ 346 -4 % $ 1,071 $ 1,208 -11 %

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%.

THIRD QUARTER OF FISCAL 2026 COMPARED TO THIRD QUARTER OF FISCAL 2025

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

Wholesale revenues increased 3%.

NIKE Direct revenues decreased 8% due to declines in digital sales of 12% and declines in store sales of 3%.

Comparable store sales decreased 5%.

• Footwear revenues decreased 3% 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.

Unit sales of footwear decreased 3%, while ASP per pair was flat as product mix and strategic pricing were offset by channel mix and higher discounts.

• Apparel revenues increased 4% 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.

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

Reported EBIT decreased 4% reflecting higher reported revenues more than offset by:

• Gross margin contraction of approximately 200 basis points, primarily due to unfavorable changes in standard foreign currency exchange rates.

• Demand creation expense decreased 6%, primarily due to lower brand marketing expense, partially offset by unfavorable changes in foreign currency exchange rates.

• Operating overhead expense was flat as unfavorable changes in foreign currency exchange rates were offset by lower other administrative costs and lower wage-related expense.

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

• APLA revenues decreased 2% on a currency-neutral basis primarily due to lower revenues in Southeast Asia & India, Japan and Korea, partially offset by higher revenues in Central & South America and Pacific.

Wholesale revenues increased 2%.

8 unchanged sentences

Reported EBIT decreased 11% 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.

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

• Demand creation expense increased 4%, primarily due to higher sports marketing expense, partially offset by lower brand marketing expense.

• Operating overhead expense increased 3%, primarily due to higher wage-related expense and unfavorable changes in foreign currency exchange rates.

GLOBAL BRAND DIVISIONS

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

THREE MONTHS ENDED FEBRUARY 28, NINE MONTHS ENDED FEBRUARY 28,

(Dollars in millions)

2 unchanged sentences

Cost of sales 160 148 8 % 480 448 7 %

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

Gross profit (loss) (153) (136) -13 % (455) (409) -11 %

Demand creation expense 170 158 8 % 558 547 2 %

5 unchanged sentences

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

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,

THIRD QUARTER OF FISCAL 2026 COMPARED TO THIRD QUARTER OF FISCAL 2025

Global Brand Divisions' loss before interest and taxes increased 11%, primarily due to higher Operating overhead expense.

Operating overhead expense increased 10%, primarily due to higher wage-related expense, driven by employee severance costs, partially offset by lower other administrative costs.

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

Global Brand Divisions' loss before interest and taxes increased 1%, primarily due to higher Cost of sales, partially offset by lower Operating overhead expense.

Cost of sales increased 7% primarily due to higher wage-related expense.

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

THREE MONTHS ENDED FEBRUARY 28, NINE MONTHS ENDED FEBRUARY 28,

(Dollars in millions)

11 unchanged sentences

97 188 -48 % 394 663 -41 %

124 207 -40 % 297 475 -37 %

Gross margin 36.7 % 46.4 % -970 bps 42.4 % 49.7 % -730 bps

9 unchanged sentences

(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.

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

THIRD QUARTER OF FISCAL 2026 COMPARED TO THIRD QUARTER OF FISCAL 2025

• Converse revenues decreased 37% on a currency-neutral basis driven by declines in all territories.

Unit sales decreased 26%, while lower ASP reduced revenues by approximately 5 percentage points.

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

Unit sales decreased 37%, while ASP was flat.

• Wholesale revenues decreased 35% on a currency-neutral basis, driven by declines in all territories.

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

• Direct to consumer revenues decreased 41% on a currency-neutral basis, reflecting reduced traffic in all territories.

Reported EBIT decreased 203% 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.

• Gross margin contraction of approximately 970 basis points, primarily due to the brand and marketplace reset costs, including employee severance costs and higher inventory obsolescence reserves.

• Demand creation expense decreased 58%, primarily due to lower brand marketing expense.

• 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

• Operating overhead expense increased 11%, primarily due to higher wage-related expense, driven by employee severance costs, partially offset by lower other administrative costs.

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

• Converse revenues decreased 32% on a currency-neutral basis driven by declines in all territories.

2 unchanged sentences

• Wholesale revenues decreased 33% 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.

• Direct to consumer revenues decreased 31% on a currency-neutral basis, reflecting reduced traffic in all territories.

Reported EBIT decreased 102% 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.

• Gross margin contraction of approximately 730 basis points, primarily due to lower ASP, as well as the brand and marketplace reset costs, including employee severance costs and higher inventory obsolescence reserves.

• Demand creation expense decreased 37%, 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

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

THREE MONTHS ENDED FEBRUARY 28, NINE MONTHS ENDED FEBRUARY 28,

(Dollars in millions)

2026 2025 % CHANGE 2026 2025 % CHANGE

Revenues $ 3 $ (26) — $ (2) $ (74) —

Cost of sales (28) (15) — (51) (50) —

Gross profit 9 (3) — 18 (13) —

Gross profit (loss) 31 (11) — 49 (24) —

Demand creation expense 3 2 50 % 7 9 -22 %

12 unchanged sentences

and certain other foreign currency derivative instruments.

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

THIRD QUARTER OF FISCAL 2026 COMPARED TO THIRD QUARTER OF FISCAL 2025

Corporate's loss before interest and taxes decreased $59 million, primarily due to the following:

• 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 $57 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 $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

• a favorable change of $12 million in Operating overhead expense, primarily related to lower other administrative costs, partially offset by higher wage-related expense;

• a favorable change of $5 million primarily related to settlements of legal matters, mostly offset by 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 NINE MONTHS OF FISCAL 2026 COMPARED TO FIRST NINE MONTHS OF FISCAL 2025

Corporate's loss before interest and taxes decreased $119 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 $94 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.

• a favorable change of $93 million in Operating overhead expense, primarily related to lower other administrative costs;

• an unfavorable change of $50 million primarily related to remeasurement of monetary assets and liabilities denominated in non-functional currencies and the impact of certain foreign currency derivative instruments, partially offset by settlements of legal matters, 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 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.

As of and for the three and nine months ended February 28, 2026, 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 8 — 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 $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.

The impact of foreign exchange rate fluctuations on the translation of our consolidated Revenues was a benefit of approximately $399 million and $735 million for the three and nine months ended February 28, 2026, respectively.

The impact of foreign exchange rate fluctuations on the translation of our Income before income taxes was a benefit of approximately $62 million and $143 million for the three and nine months ended February 28, 2026, 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 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.

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 $29 million and $12 million on our Income before income taxes for the three and nine months ended February 28, 2026, respectively.

LIQUIDITY AND CAPITAL RESOURCES

CASH FLOW ACTIVITY

SIX MONTHS ENDED NOVEMBER 30,

NINE MONTHS ENDED FEBRUARY 28,

(Dollars in millions)

2025 2024 $ CHANGE

Cash provided (used by):

1 unchanged sentence

Investing activities

(108) (240) 132

Financing activities

3 unchanged sentences

$ (804) $ (1,259)

Cash provided by operations decreased $642 million.

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 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.

For the nine months ended February 28, 2026, cash provided by operations was $1,231 million.

This was driven by Net income of $2,039 million, adjusted for non-cash items of $1,018 million, and a net change in certain working capital components and other assets and liabilities that decreased cash provided by operations by $1,826 million.

The net change in certain working capital components and other assets and liabilities was primarily driven by an increase in Accounts receivable, a decrease in Accounts payable and a decrease in Income taxes payable.

The increase in Accounts receivable was primarily due to higher wholesale revenues and the timing of wholesale shipments.

The decrease in Accounts payable was primarily due to lower other administrative costs and the timing of payments.

The decrease in Income taxes payable was primarily due to U.S.

federal income tax payments.

For the nine months ended February 28, 2025, cash provided by operations was $3,235 million.

This was driven by Net income of $3,008 million, adjusted for non-cash items of $875 million, and a net change in certain working capital components and other assets and liabilities that decreased cash provided by operations by $648 million.

The net change in certain working capital components and other assets and liabilities was primarily driven by an increase in Accounts receivable and an increase in Prepaid expenses and other current assets.

The increase in Accounts receivable was primarily due to the timing of wholesale shipments and the increase in Prepaid expenses and other current assets was primarily due to payments related to endorsement contracts.

INVESTING ACTIVITIES:

For the nine months ended February 28, 2026, cash used by investing activities was $276 million, primarily driven by a net change in short-term investments (including purchases, sales and maturities) and increased additions to Property, plant and equipment.

For the nine months ended February 28, 2025, cash used by investing activities was $289 million, primarily driven by a net change in short-term investments (including purchases, sales and maturities).

FINANCING ACTIVITIES:

For the nine months ended February 28, 2026, cash used by financing activities was $1,778 million, primarily driven by dividend payments.

For the nine months ended February 28, 2025, cash used by financing activities was $4,176 million, primarily driven by share repurchases and dividend payments.

During the first nine 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 February 28, 2026, 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 February 28, 2026.

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

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.

4 unchanged sentences

The Shelf expires on July 17, 2028.

As of November 30, 2025, our committed credit facilities were unchanged from the information previously reported within our Annual Report.

As of February 28, 2026, 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.

2 unchanged sentences

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.

As of February 28, 2026, 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, 2026 and May 31, 2025, no amounts were outstanding under our committed credit facilities.

On March 6, 2026, subsequent to the end of the third quarter of fiscal 2026, 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 5, 2027, 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 7, 2025, which matured on March 6, 2026.

Refer to Note 4 — Short-Term Borrowings and Credit Lines within the accompanying Notes to the Unaudited Condensed Consolidated Financial Statements for more information.

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

As of and for the three months ended November 30, 2025, we did not have any borrowings outstanding under our $3 billion program.

As of and for the three months ended February 28, 2026, 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 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.

As of February 28, 2026, we had Cash and equivalents and Short-term investments totaling $8.1 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 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.

While individual securities have varying durations, as of February 28, 2026, the weighted average days to maturity of our cash equivalents and short-term investments portfolio was 119 days.

We believe that existing Cash and equivalents, Short-term investments and cash provided 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

CONTRACTUAL OBLIGATIONS & OFF-BALANCE SHEET ARRANGEMENTS

As of February 28, 2026, 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.

Refer to Note 12 — 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 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