A：Nike has taken meaningful actions to improve the health and foundation of its business, including removing unhealthy inventory from the marketplace, focusing on athlete-centered innovation, building platforms that can scale across multiple sports and price points, reshaping the wholesale business, and investing in technology platforms for better consumer service and business operations.

A：The removal of unhealthy inventory created a roughly five-point headwind to Nike's reported results, but it is improving the health of the marketplace, the quality of revenue, and is considered a foundation for more sustainable growth ahead.

A：Nike focused on sport offense, running, performance sports, football, wholesale business, and North America while removing inventory. This focus was based on creating the greatest impact in areas like sport offense and running, as well as on strengthening the company's presence in the wholesale business and its largest geographic market.

A：Nike is addressing the comebacks of greater converse and sportswear by having new leadership in place, clearer strategies, and structural changes underway to strengthen these businesses over the long term, with actions taken brand by brand, sport by sport, country by country, and partner by partner.

A：The expected outcome of the actions taken by Nike is a strengthening of the company for the long term, the creation of more durable value for shareholders, and the completion of the Win Now actions across the marketplace, which will result in healthier inventory levels and allow for consistent athlete-led innovation in products across all sports.

A：Nike introduced the Nike Mind platform, which sold out in all geographies, and was designed to help athletes clear away distractions pre and post-competition. In response to demand, production of Nike Mind was doubled over the next ingredient to meet the needs of consumers who had signed up for notify me on nike.com.

A：Nike introduced several early-stage innovation platforms such as using Nike Air for the first time as a self-inflated thermal layer in apparel, unveiling a new Liquid Air Max platform, and for football, the new elite Appel platform that increases air by 200% over regular dry fit, which will expand into multiple sports including Nike running in the fall.

A：The review by Nike's leadership team of the full innovation agenda for 2027 and 2028 suggests a focus that is showing up in sharper athlete insights and more complete head-to-toe solutions. It indicates an excitement to share the vision for the future with stakeholders this fall.

A：In North America, Q3 revenue grew by 3%, while Nike Direct declined by 5% and Nike Digital was down 7%. Nike stores were down 1%, and wholesale grew 11%. EBIT declined by 11% on a reported basis.

A：The digital business improved sequentially throughout the quarter, with average retail discounts decreasing, and wholesale revenue growth driven by new distribution and lapping marketplace management actions with existing partners. However, sell-through was below plan until February, when it improved, and all channels in North America grew for the first time in two years.

A：In EMEA, Q3 revenue was down 7%, with Nike Direct declining 13% and Nike Digital down 6%. Nike stores were down 20% and wholesale was down 4%. EBIT increased 7% on a reported basis. The region faced challenges but also progress, with continued actions in a highly promotional marketplace to build momentum, led by double-digit growth in running and declines in sportswear.

A：Inventory dollars grew low single digits while units were down high single digits, primarily due to tariffs. Closeout units remained low, and the mix was healthy from a margin recovery perspective. North America gross margins declined 360 basis points versus the prior year despite 650 basis points of gross impact from new US tariffs. Inventory dollars grew double digits versus the prior year with units up mid single digits.

A：For the remainder of the fiscal year, revenues are expected to be down low single digits versus the prior year, attributed to market management actions. In the fourth quarter of fiscal 26, revenues are expected to be down low single digits with modest growth in North America, largely offset by declines in Greater China and Converse. Greater China is expected to be down approximately 20% due to reduced sell-in and actions to clean up the marketplace. The team also anticipates a script point benefit from foreign exchange and a sequential improvement in gross margin, despite higher tariffs impacting North America.

A：The Camp Nou stadium is currently undergoing a phase of being rebuilt, tier by tier and piece by piece, to accommodate over 100,000 supporters. Despite the ongoing construction and limitations on capacity, the supporters remain enthusiastic, and the players continue to compete and win on the pitch.

A：Nike is addressing its current challenges by removing what is not working, rebuilding parts of the foundation, and continuing to innovate and compete for the future. This approach requires conviction, patience, belief, and focus. Nike views the work as an ongoing effort to return the company to greatness, build it correctly for the long term, and modernize it for new generations of athletes and consumers.

A：Nike is seeing growth in performance in EMEA with double-digit growth, and is excited about plans for the World Cup and upcoming product launches in running and training. The company is focusing on addressing the challenges such as lower sell-in, higher levels of promotional activity, and traffic disruptions, by being more promotional to manage inventory, and maintaining a good closeout mix. Nike is also confident in its team's ability to work through the elevated inventory issue.

A：Nike has brought in a new leader with a deep and broad product and marketplace experience to focus on an integrated marketplace and elevated product assortment. The team is now focused on driving sell-through with strategic partners and ensuring the right product assortment in stores. These actions are part of the ongoing efforts to improve the EMEA region.

A：Revenue is expected to grow by a low single-digit percentage, with North America showing an improvement. Greater China is likely to show a meaningful negative impact. Earnings per share (EPS) are expected to be flattish for the fourth quarter and to grow significantly in the May quarter. The revenue growth is attributed to the implementation of the 'win now' actions, which are creating meaningful progress in improving the health and quality of the business.

A：Recent actions and strategies include the appointment of new leaders, the creation of thoughtful long-term strategies, and structural changes.

A：The anticipated trajectory is for modest revenue growth in North America despite a low single-digit revenue decline over the next nine months, with continued momentum in North America and offset by headwinds in Greater China. Margins are expected to improve significantly in the second quarter.

A：The DTC shift is a part of a broader strategy to serve consumers across various channels, ensuring a balanced and integrated marketplace. This change is viewed as crucial for future success and involves working with partners to regain self-space and share.

A：The quality of the DTC business has improved in North America, particularly through a focus on sports, strong digital results, alignment against key sport moments, and a narrowing gap between wholesale and direct channels.

A：The sequential growth in the quarter was driven by strong launches across both Nike and Jordan, improved results in key sports on digital, continued average retail growth in North America, demand growth on the Nike app, and positive sell-through across all channels in February.

A：The company expects continued growth in performance categories, particularly due to the World Cup, strong double-digit growth in running, and solid growth in training and running products.

A：The outlook for the sportswear business in Q4 has been modified by taking into consideration the sell-through on the sports car side, disruptions in the Middle East marketplace, and traffic trends. The team is managing the marketplace carefully and has also factored in the performance in North America, where they are encouraged by the momentum.

A：The order book for summer is strong, and there are positive signs in sell-through. The business is not seeing a consumer reaction to Middle East events in North America at this time, and the teams are working hard to rebuild brand momentum across the geography and other regions.

A：The assessment suggests that the business is moving from defense to offense in both Nike sports and Jordan Street, with a priority on performance business to drive authenticity and product innovation. As for the reset activity needed in the classics franchise, the details are not fully provided, but it is implied that efforts are being made to stabilize key products like Air Force One and the AJ 1.

A：Positive developments include the Air Force One and AJ 1 stabilizing, with improvements in full price realization and strong sell-through. The sportswear and streetwear teams are focusing on creating buzz around business with successful launches and high full price realization across products. The sportswear and streetwear teams are making progress, although there is still work to be done.

A：The company acknowledges that the recovery process is taking longer due to a combination of internal and external challenges. It is dealing with these challenges by reorganizing teams, focusing on product, consumer, and storytelling, and aligning country teams for a more integrated marketplace. Despite the external factors, the company is confident in its internal controls and progress towards future growth.

A：The long-term view is that sportswear will remain a critical part of the industry and essential to the company's success. The company is taking a streets-up approach to make the business feel more local, which will take time but is vital for a healthy sports business that will drive the company's growth and market expansion.

A：Revenue expectations for the first half of next year are within the range provided for Q4. The performance is expected to be highlighted by trends such as continued momentum in North America, balanced growth across channels, and improvements in underlying profitability. The revenue growth will be tempered by the anniversarying of prior-year off-price liquidation. The EMEA and APAC regions are also expected to see improvements in sell-through and profitability as a result of ongoing market cleansing actions.