NIKE (NKE) 19 Dec 242025 Q2 Earnings call transcript

Good afternoon, everyone. Welcome to NIKE, Inc.'s Fiscal 2025 Second Quarter Conference Call.

For those who want to reference today's press release, you'll find it at investors.nike.com. Leading today's call is Paul Trussell, VP of Corporate Finance and Treasurer.

Now I would like to turn the call over to Mr. Paul Trussell. sir. ahead, go Please

Hello, discuss thank second NIKE, operator. us quarter for today to Inc.'s everyone, you, you and joining results. Thank fiscal XXXX

President and on CEO, us today's will NIKE, Joining call Elliott CFO, our Inc.'s Hill; Matt Friend. be and

and you to me will statements uncertainties are actual with could certain uncertainties current risks begin, on on those and results forward-looking participants materially. cause remind and we NIKE's this that to These in Before statements reports based SEC. expectations, the let call make are risks differ detailed subject that filed

measures In otherwise to nonpublic presented on addition, the noted. participants or comparable may unless discuss basis press reconciliations. year-over-year earnings a and and non-GAAP NIKE's refer on are financial All information. Please measures today investors.nike.com currency comparisons neutral for and GAAP call statistical are release and website, financial NIKE's quantitative growth

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Now turn our financial let me to outlook.

of I quarter, to said last As this period during intend quarterly transition. we guidance providing continue

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Thanks, Matt.

and back to Before wanted I get pull questions, clear taking made have business additional market some to repositioning the that thoughts. to a share Matt NIKE. it we're I driving for

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Guggenheim. question Bob [Operator Instructions] Drbul, from comes The first

of Elliott, welcome back. Congratulations best luck. and

you, Thank I good It's it. appreciate Bob. to be back.

partners, reception I'd you've to elaborate over the last for the a I relationships and bit love The by one appreciate that you back the is shelf guess, commentary. space up given more earning years. as around the company a I especially question all few your on the retail

Bob. you, Thank Yes.

say. I'd what Here's

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partners, I got our of Bob, of of have there, terms you history In know, long number all I've and key listed I deep them. them. relationships a with wholesale a as

getting to positive. If the in so do. in response have our have the and very way profitable to. want being us, would all statements had will call Because brand going bring you, NIKE, back heat back And and excited to marketplace, every have bringing open, to unrelenting what to said we're And us across for for to we say, they drive Bob, for that already fall space especially and they're help and want to to bringing been single them. they we all to delivering specialty bring to to shelf looking what going and planning key and that engagement account to to back the wholesale with started out we're points the innovative specialty, exactly we're forward for is up channels, us traffic need it drive back price up to get and work flow to sort traffic. that get We've meetings engage we're want they product things or back pave of I we've out, being here of mutually areas. and and investing we when from invest in out there. we for them business product bold only products innovative and They're And -- that frame sports they laid the coveted to brand has all -- against committed open 'XX, quarter, done, us want drive us with running them get those in football it's to partners, that's meetings I bring get to drives started to and and We've receptive, the them do growth is sell-through. the buying already

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We'll next take Evercore. Michael Binetti, from the question

the gave you And Elliott, some Elliott, to how you commentary planning great investments near-term welcome investments us the your -- think it's you business. back, into allusions of in you're some those fall. hear the continuing Matt, some around voice. did to made

along the you the days important phase of back this growth along pace the longer do I bringing those into are as look way you growth investments to, brand investments it look we you first how returning to cost your fiscal the guess, think as to way look about you the past about 'XX. to path in the XX at and term most getting that As business think back things and some the what of deserves,

around. our Thank market saw we've we in at you, back the travelled as get and got center foremost, touched that putting first do. everything We we Michael. we the in to of to on, remarks, prepared sport out And what

out marketing clean management, to brand shift to Our what we up to starting we're in starting dollars from We're marketing. marketplace. product the performance have

drive where We creation, our fields will in with marketing will game big, key also touched newness, both ground bold we play And just later We'll think of from is our finally, which speak product that's sports we key countries, cities. then innovation, demand everywhere. brand. teammates. do invest then and our we distinction, way of our invest the easiest about our we then and on we I brand in in them call what today it, efforts. And our think all marketing to the can't But because

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Hutchinson Lorraine next From of question. has America, the Bank

lot to sales? You're do fiscal of lifestyle scale offset when incremental XXXX will on the sufficient of But gain expect on pressure And in around 'XX. based pressure? work how the newness accelerating you your analysis a pipeline, much that

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the we those business first this the that forward X step was second was quarter franchises another than overall the quarter, for rate greater and the this and than drove quarter. straight quarter at in took a rate we Lorraine, decelerated faster

a on I of had because digital. And that mentioned franchises effect quarter, has the disproportionate of results so NIKE on as those business last concentration Digital the

for in on those he being year. And XX to have Elliott actions balance And our what had where plans take the accelerated wants we so and a the these mid-single-digit in headwind result our and current looking highlighted days product at would financials portfolio, actions. of we with this was that

of level. I next and and at on impact to made franchises price seasons almost ensure for the entire 'XX across the and the prepared are that year, with the actions, I'd offset of that prior of innovation. And And a Elliott contribution accelerated so be outlined. this weeks the I summer these remarks by is my that a level reducing getting down this few versus year. healthy full actions very bigger newness comment the expect marketplace, balance back to it reflects these sharp of specific supply the even note over slightly in we that that

me, is that as we a even ago with confidence so partners. started signal pipeline over for gives the taking root a year the is And build that our me to work

Yih the Barclays question. has Adrienne next from

meeting Look welcome. Elliott, to you. forward

Thank you, Adrienne.

appreciate I apologize is the of that. my crackly, about phone margins notion sorry sales. if I before

you reset get the at innovation proven kind sort are at we next to what of you're when reset to fall When the so the you're have you doing, what And year, accelerating replace very look of of actions. liquidating scale a gross going that you do there margin. provision in up, to that's is right the much happening of kind for would Matt, all then, And now? are And sales. margins you that before seem now it those inventory wrap

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next Sole The question UBS. from is from Jay

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is Matthew Boss, up Next JPMorgan.

category? help return to long-term the sustainable then pull And And to you pipeline market? view, by inventory realign you opportunities Elliott, then of the product line rank play what's on after, to profitable Great. growth? see investments for the reasonable the to a just and could so marketing time fields maybe

Yes.

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is question next Baird. The Jon Komp,

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is Sachs. from up Brooke Roach Next Goldman

course you you actions was the any over China America as could look you'll these in actions that speak either hoping Greater the to months. next North accelerate to of geographies XX Elliott, I be the or specific of taking some

Yes.

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research, the is terms of a Lab, Research have also China, NIKE foot cetera. that We lab. research call sports doing, We form, Sports of et gait, NSRL, in it

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from Now Fargo. we'll Ike Boruchow, hear Wells

great Elliott, think, X you. from Matt. I for Actually hear questions, to

guide. last the year so relative ] I just on follow-ups of a guide [ the talked out. quarter, third in make for took to some sure restructuring Just of other in $X.X billion about you I expenses the want the the words, those When understand. expense Is charges that to

to slightly follow-up So growth greater of a down the relative that relative to is trying talked or understand dollar then slightly to to headwinds about when is -- number? And XQ. just just what you is

comment I think gen line specific? something of that meant was Or to Was or revenue margin in or absolutely the really those sentence of talking it items? and for more gross meant gross X about was demand margin all spend. the revenue,

first question, the SG&A related is restructuring full prior your charge including Ike, Yes. year. on the in guide to amount, the the

second your question, to is As yes. it answer the relates

and happening the the in see they think be these mentioned, we these can across today, of I margin third based fourth revenue, across lines time actions different on than quarter creation larger we quarter. what regions. impact on demand in actions different the As will And are net are

to the So the way take impact in it -- when more be quarter. is significant year-over-year fourth is another you compare prior impact, to the the year, will year-over-year

the you that for conclude does everyone, all well And We as today's like today. question-and-answer as conference. your would to thank participation session

disconnect. now may You