The call, led by VP of Corporate Finance, opens with an invitation to review Nike's Q2 fiscal 2026 press release. It highlights forward-looking statements, non-GAAP measures, and reconciliation details, emphasizing year-over-year comparisons in currency-neutral terms.

The CEO acknowledges team efforts, outlines Win Now actions and Sport Offense strategy, highlights North America's leadership, and emphasizes global market engagement for growth.

Nike's strategy focuses on strengthening partnerships, adapting to unique market conditions, and leveraging local teams to inspire consumers, with a special emphasis on North America's success and China's potential. The company aims to drive profitable growth by refining its approach in key geographies, enhancing brand and sport-specific marketing, and ensuring every detail contributes to a superior consumer experience.

Nike's strategy focuses on a diversified product portfolio through footwear, apparel, and equipment innovations. Despite facing pressures on margins due to market cleanup efforts and tariffs, Nike remains committed to expanding its product innovation pipeline. The company introduces new platforms like Nike Mind for performance preparation, aerospa for enhanced apparel, and continues scaling successful collections internationally. Leadership changes, including a new COO role, aim to improve operational efficiency and profitability. Despite challenges, Nike's order book is improving, and significant investments are being made in marketing and product development to inspire consumers and elevate the brand.

Reflecting on a year since Eliott joined, Nike showcases recovery in running and digital sectors, though faces challenges in Greater China and Converse, alongside $1.2 billion annual product cost hikes from tariffs, aiming for sustained growth and margin improvement.

The dialogue discusses Nike's financial results, highlighting a year-over-year increase driven by higher brand marketing expenses, partially offset by lower operating overhead. It outlines progress in North America, focusing on the Wind Now strategy, which has led to profitability recovery and sustainable growth. Key points include strong wholesale growth, improvements in Nike Direct, and a focus on premium offerings. The discussion also touches on inventory management, tax rate changes, and regional performance, emphasizing disciplined cost management and strategic actions for future growth.

Despite robust growth in performance and sportswear, particularly in Central and Eastern Europe, EMEA and Greater China face challenges with inventory management and declining store traffic. Nike's focus shifts to enhancing brand distinction through sport and innovation, leveraging local insights for premium market integration.

Addressing the impact of off-price sales and higher markdowns, Nike focused on sport innovation and retail presentation, achieving better traffic and sales growth in their initial store pilot, particularly in running, to strengthen its premium positioning in the Greater China market.

The dialogue outlines strategies implemented to reduce Nike inventory by mid-teens and 20% in units, cutting sell-in plans for spring and summer buys to improve sell-through and full-price realization. It emphasizes the need for further shifts in the integrated marketplace, scaling the momentum of initial store pilots, elevating brands across digital platforms, and clearing excess product to break existing management cycles.

Nike faced revenue challenges in Q2, with declines across various segments, particularly in Asia Pacific. Despite efforts to manage inventory and leverage promotions, overall revenue and EBIT decreased. Looking ahead, Nike anticipates low single-digit revenue decline in Q3, driven by modest growth in North America and impacts from tariffs and foreign exchange, with strategies aimed at long-term brand health.

The dialogue outlines financial expectations including dollar appreciation and expense management, highlighting investments in sports and North America to support brand recovery and long-term health.

Focuses on operationalizing sports offenses, rebuilding key city teams, and enhancing profitability. Highlights the Dodgers' World Series win as a lesson in perseverance, trust, and making bold decisions. Emphasizes the importance of leaning on each other, staying focused on fundamentals, and making hard calls to achieve long-term success, paralleling Nike's current challenges and goals.

The dialogue highlights Nike's progress in its turnaround strategy, emphasizing growth in North America and the effectiveness of its 'Win Now' actions and 'Sport Offense' initiatives. It discusses the varying pace of recovery across different geographies and product segments, with China facing the longest road ahead. The conversation also touches on margin improvements, particularly in North America, despite headwinds from new tariffs, and outlines expectations for future margin expansion, indicating a focus on sustainable growth.

A global company discusses its strategy for achieving sustainable growth by diversifying product portfolios across multiple brands, geographies, and sports. The company highlights its progress in North America, confidence in driving modest wholesale growth, and the need for flexibility in addressing challenges in Greater China. The approach involves small, cross-functional teams operating at different timelines to create beautiful products and capitalize on integrated market opportunities.

Discussed strategies for achieving double-digit EBIT margins through growth, efficiency improvements, and cost management. Also addressed China's market challenges, highlighting recovery efforts and the impact of inventory clean-up.

Nike is redefining its strategy in China by focusing on sport rather than lifestyle, cleaning up aged product, and enhancing retail presentation. Early successes are noted, but more work is needed to restore Nike's premium and innovative brand image in the Chinese market.

A discussion on the phased growth of retail verticals highlights strong market acceptance and innovation across all sectors. The focus is on achieving rapid growth in certain areas while maintaining a steady pace in others. Regarding North America, the strategy emphasizes the balance between new distribution points and same-store sales growth, with plans to potentially expand the distribution network further.

Nike is enhancing its sports opportunities by launching new products in running, football, and basketball, while strengthening marketplace partnerships to sustain growth. The company focuses on innovation, connecting R&D to sport offense, and expanding its portfolio to cater to diverse consumer needs. Marketplace strategy is consumer-based, aiming to be in the path of consumers through digital and physical channels.

The dialogue focuses on strategic planning for sustainable growth by setting three-year visions and aligning them with one-year and seasonal plans. It also discusses the challenges in China, emphasizing the need for a fresh perspective, new approaches, and capabilities to overcome current headwinds and return to growth. The speaker expresses confidence in the team's ability to address these challenges and restore double-digit margins.

Emphasizes the complexity of operating in a global, dynamic environment, highlighting the importance of flexibility and daily responsiveness. Encouraged by North American progress, the focus remains on short-term consistency with a commitment to sharing longer-term insights as confidence grows.

The dialogue explores the factors contributing to significant North America revenue growth, emphasizing domestic product performance and the impact of wholesale penetration. It also discusses potential adjustments in operating overhead and the strategic reallocation of resources towards demand creation, highlighting the company's competitive edge.

The dialogue highlights North America's strong growth, particularly in running and global football, with market share gains and successful product launches like Jordan's AJ for Black Cat. It discusses the transition from liquidation-fueled growth to full-price growth, emphasizing cost leverage from wholesale growth and strategic investments in demand creation, while maintaining a balanced portfolio across sports brands.