Nike Inc Q2 2026 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Matthew Boss - JPMorgan Chase & Co - Analyst : So Elliot, you led both in the release and on the call, by citing the turnaround is in middle innings. Could you elaborate maybe where you've scored run so far versus where you have opportunity remaining, and just your overall confidence today that that you can win the game. LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 18, 2025 / 10:00PM, NKE.N - Q2 2026 Nike Inc Earnings Call And then, Matt, if you could just elaborate on the components of gross margin that you cited. I think you cited underlying expansion, excluding tariffs for the third quarter. And just the progression that we should think about moving forward.

Question: Ike Boruchow - Wells Fargo Securities LLC - Analyst : I guess maybe for Elliot, maybe a similar type of question as Matt's. But you've mentioned the recovery won't be linear several times over the past year or in transition, and it totally makes sense. I guess I'd like to know if you're able to share when you believe that maybe that caveat won't be needed anymore, and you'll be able to better kind of hold momentum, create better visibility for investors on what's clearly becoming a reset base of revenue and earnings?

Question: Aneesha Sherman - Sanford C Bernstein & Co LLC - Analyst : Elliot, at the start of 2025, you expressed your strong confidence in the pipeline for running, and you laid out this 3x3 framework that you discussed with partners, and we're now seeing strong acceptance in the market and the business is growing over 20%. As you look across the other verticals, I know you talked about new innovation across all of them. But how do you see the phasing of the growth? And are there particular areas where you have that same level of conviction that you had in running a year ago and where you expect the business to ramp very quickly versus some that are a little slower? And then a follow-up on North America. Matt and Elliot, you both talked about the contribution of new distribution and same-store sales on the wholesale growth. Are you happy with the mix of partners you have now? Or is the goal to continue to ramp up new distribution points into next fiscal year as well? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 18, 2025 / 10:00PM, NKE.N - Q2 2026 Nike Inc Earnings Call

Question: Jonathan Komp - Robert W. Baird & Co Inc - Analyst : Maybe one more on China. Do you think the North America experience where Elliott, we saw maybe two or three quarters of severe pressures after you came in and accelerated, the Win Now actions followed by now a return to growth in healthier conditions. Is that a reasonable time line or playbook to think about China? And then just maybe bigger picture, if you are viewing some of these headwinds currently in resets more as temporary. Maybe just expand on why not providing maybe two- or three-year out targets or a little bit more specificity around the time line to get back to double-digit margins?