Nike, Inc.

Good afternoon, everyone, and welcome to Nike Inc's second quarter fiscal 2026 conference call. For those who want to reference today's press

based on current expectations, and those statements are subject to certain risks and uncertainties that could cause actual results to differ materially. These risks and uncertainties are detailed in Nike's reports filed with the SEC. In addition, participants may discuss non-GAAP financial measures and non-public financial and statistical information. Please refer to Nike's earnings press release or Nike's website investors.nike.com for comparable gap measures and quantitative reconciliations. All growth comparisons on the call today are presented on a year-over-year basis and are currency neutral unless otherwise noted. We will start with prepared remarks and then open the call for questions. We would like to allow as many of you to ask questions as possible in our allotted time. So we'd appreciate you limiting your initial question to one. Thank you for your cooperation on this. I'll now turn the call over to Nike Inc. President and CEO, Elliott Hill. Thank you, Paul.

Let me start by thanking all of you for joining on the eve of a holiday week here in the United States and many parts of the world. And with that, let me also recognize a Nike team that's leaving nothing on the table right now. When you work in retail, the holidays don't mean a break. When you work in sport, you often say that sport never sleeps. So when you work at Nike, you're then the thick of an incredibly busy time. With that in mind, I want to extend a special and heartfelt thanks to my Nike teammates. Thank you for your continued commitment, passion, and determination. And thank you for delivering another quarter of steady progress and building momentum. Fiscal year 26 continues to be a year of taking action to right-size our classics business, return Nike Digital to a premium experience, diversify our product portfolio, deepen our consumer connections, strengthen our partner relationships, and realign our teams and leadership. And I'd say we're in the middle innings of our comeback. We started with the Win Now actions, which was our immediate response to our biggest challenges and opportunities in our culture, product, storytelling, marketplace, and winning on the ground. And now our sport offense is the accelerator of our Win Now actions. It's how athlete-centered innovation travels across and through every country, and channel to drive growth. Our focus on sport by brand is the engine of our growth. Our global marketplace is the amplifier, and it is our sport offense that connects the two. Said another way, our growth will come from sport, athletes, product innovation, sport moments, and will be scaled through countries, channels, and accounts. Turning to the quarter, I'd frame up the results as slightly better than we had anticipated 90 days ago. And while we're driving progress through when now, we're nowhere near our potential. I see three things that give a better picture of where we stand right now. The first theme is that our sports teams are quickly finding the rhythm in the new sport offense. While right sides in our classics We're building a more diverse product portfolio, gaining the most traction in our performance business, which validates that we've got the right structure to drive a relentless flow of innovative products across our unmatched opportunities. The second theme is that we're building a healthier base for top-line growth. The Nike brand grew this quarter, and the mix was strong. We delivered 8% wholesale growth, elevated the experience in key Nike stores in Nike.com, and had fewer days of promotion. These are all positive signs. The third theme is that our comeback continues to move at different speeds. It won't be a straight line, but we're acting decisively to accelerate the lagging areas with China at the top of that list. A year in, It's clear how important it is to stay closely connected to what's happening on the ground. From intern to CEO and every role I've held in between, I've felt that way. Which is why, as you likely saw this quarter, I announced a change in my leadership team. All geographies will now report directly to me. I'm confident this change will result in us accelerating our win-now actions by allowing our geography GMs to more closely shape our strategy, drive faster decisions, and influence investments. The geography that is leading the way for Nike right now is North America. As our largest business, that's where much of our focus has been. With North America, we're working with the most diverse wholesale landscapes, which gives us several strategic partners to segment and differentiate our multi-brand, multi-sport, and multi-price point portfolio. The team has done an excellent job of reconnecting with partners and getting sharper on the consumers we serve and those that we seek to serve. This quarter, that approach led to over 20% wholesale growth in North America, with meaningful growth coming from existing partners. Our North America marketing team is also finding the right balance of inspiring through big team moments, like the Dodgers World Series campaign after their win, or at the Chicago Marathon, where we supported everyone, from everyday runners chasing personal bests to Connor Mance shattering an American marathon record that stood for 23 years. North America is driving a healthy, repeatable offense and showing us what winning looks like. It's a great signal for our future success in other geographies. In Greater China, we highlighted last quarter that we were facing a longer road to a healthier business. We've been implementing the Win Now actions in our key cities of Beijing and Shanghai, leading with more storytelling of our product innovations, editing our assortments and elevating the presentation of those assortments in targeted doors. What we've done is a start, but it's not happening at the level or the pace we need to drive wider change. The next step is to further adapt our approach to fit China's unique model brand footprint and digital first marketplace. The reset requires a fresh way of thinking from our Nike teammates and our Nike store partners, and it will take time. Over the years, we established our premium position in market share there because the Chinese consumer believes in our ability to innovate and inspire them through sport. I'm confident we'll get back to fulfilling that promise. China continues to stand out as one of the most powerful long-term opportunities in sport. That has not changed. Expect to hear, see, and feel much more about how we'll manage the China marketplace differently this fiscal year and beyond. Both EMEA and APLA are geographies that are led through distinct influential countries and key cities. So we're moving quickly to resourcing our teams on the ground, including sales. They're the ones who deliver locally relevant assortments, elevate the presentation of those assortments, fuel product seeding, and build local relationships, create meaningful stories and consumer connections, and ultimately drive profitable and sustainable revenue in both wholesale and direct. EMEA activated their sport offense on December 1st, so they just started rehiring these critically important revenue-generating roles in key countries. I'm locking arms with the leaders of our geographies and with Matt, who now lead sales and Nike Direct to elevate the way consumers experience our brands. I know what it looks like when it's successful. I can see the upside. It's a brand by brand, sport by sport approach, paid off in a partner by partner, city by city, high street by high street, mall-by-mall approach, and every detail matters. Next, I'll share some color on how the sport offense is fueling a more diversified product portfolio through footwear, apparel, and equipment, and up and down price points. Our teams are determined to deliver a consistent product innovation pipeline. In January, Nike running will build off of the strong start of our new stability shoe, the Structure 26, with the introduction of the Structure Plus. In Q2, running grew by over 20% for the second quarter in a row. It's up double digits in every channel, including Nike Direct. Also in January, we'll debut Nike Mines. A new footwear platform that will help athletes prepare for performance and competition, which we see as a new dimension to the Nike trainings offense. We introduced Nike Mind along with three other new innovations platforms in October. One of them is the new platform that traps air for warmth in an ACC jacket. The jacket inflates from a shell to a puffer based on the warmth needed. The Thermafit Air Milano jacket will debut at the Winter Olympics in February. Also in February, at the NBA All-Star Game in L.A., you'll see an example of how our three basketball brands and their product lineups will come together under the sport offense. The Swoosh, the Jumpman, and the Star Chevron have a unified creative feel and merchandising approach with Foot Locker in L.A., and we believe it has great potential to be scaled. Our Nike Skims collection will launch internationally in May and APLA in the same timeframe, following a successful rollout in North America. In Nike football, the deeper investment in World Cup starts now. This quarter, we brought a fresh perspective to the culture of the game in a T90 collaboration with Palace and with our Hollywood Keepers sportswear collection. And in March, our athletes will begin wearing our new apparel platform, AeroFit, in their national team kits. AeroFit is like air conditioning for the body, flowing air through the garment unlike any previous performance apparel. The innovation platform will scale across several sport dimensions in coming seasons. Overall, wholesale partners are very confident in our Nike football product, Booking units are nearly 40% higher than World Cup 22. To help sell through the commitment, we'll refresh over 100 Nike Direct and 1400 partner doors around the world. And our marketing team is making significant investments to inspire football fans everywhere. All of these new concepts will come to the consumer in the back half of the year. As a result, our order book is improving season on season. Through the sport offense, we're on our way in product. But as I've said, near-term investments to clean up and elevate the marketplace have put real pressures on margins. Tariffs have also obviously added a significant headwind to overcome. I want to state it very clearly. Margin expansion is a top priority for me and my leadership team. While it will take time, we see the path back to double-digit EBIT margins for Nike Inc. That formula includes a multi-branded and diverse product portfolio that is constantly refreshing and bringing in newness and seeking to drive value out of every relationship we have in the marketplace. It also requires us to be bolder and more creative in how we operate. I made another change within my leadership team this quarter, asking Venkatesh Alighirasamy to be in the role of our chief operating officer. He and his team will look end-to-end to ensure technology is fully integrated across the company and how we create, plan, make, deliver, and sell our world-class innovations. We see significant opportunity to get our core operations running more efficiently and more profitably. I look forward to sharing more in the coming quarters. With that, I'll turn it over to Matt to go deeper into the quarter and then offer some closing thoughts before we take your questions.