Nike Inc Q3 2025 Earnings Call Transcript

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

Question: Lorraine Hutchinson - BofA Global Research - Analyst : Elliott, can you provide a timeline on when you think classic shoe inventories will be clean in the wholesale channel? And then same question for the direct channel as well.

Question: Brooke Roach - Goldman Sachs - Analyst : Elliott, I was hoping to get your latest thoughts on innovation within NIKE. How do you feel about the strength of your innovation team and the pipeline ahead? And how are you thinking about innovating into some of the sportswear franchises as we look into fiscal '26? Thank you.

Question: Aneesha Sherman - Bernstein - Analyst : Elliott, I just want to follow up on the comments that you just made about the Spring '26 product review. Based on some of the comments earlier from Matt around performance growth almost offsetting Classics declines, do you expect that inflection point to be in Spring '26? I know you don't have the orders yet, but is that when you expect performance growth to more than offset Classics in your wholesale order book to grow? And then, Matt, a follow up on your comments on gross margins. You talked about wholesale liquidations in H1. I know you're not giving margin guidance for next year, but are you generally expecting a gradual progression of gross margins through the year as some of those liquidations roll off and then you get a stronger order book in the second half? Thank you. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 20, 2025 / 9:00PM, NKE.N - Q3 2025 Nike Inc Earnings Call

Question: Simeon Siegel - BMO Capital Markets - Analyst : Elliot, I'm curious how are you going to balance the promotional? Just like as you think about the presentation and bring out promotions at the same time that it's clear we can hear your excitement around the new product and you're amplifying storytelling. Just from a consumer's perspective, how do you tell them this exciting story while still clearing the product? So how are you going to protect that and maybe segment that? And then, Matt, it seems operating overhead versus demand creation trajectory flipped in recent years. So as you're reembracing wholesale, as you reembracing elevating, any thoughts as to just the right level long term of overhead versus demand creation as a rate of sales. Thanks, guys. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 20, 2025 / 9:00PM, NKE.N - Q3 2025 Nike Inc Earnings Call

Question: Alex Straton - Morgan Stanley - Analyst : I just wanted to focus on wholesale here. And maybe for Elliott, as you've kind of returned to that channel gotten back in the mix, I'm just curious, your biggest learnings there, any surprises to the upside or downside versus how you've historically operated there with all your knowledge? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 20, 2025 / 9:00PM, NKE.N - Q3 2025 Nike Inc Earnings Call And maybe then for Matt, you just mentioned wholesale discounts as a headwind, which should continue. Are historical wholesale margins still in view? Or are those structurally lower? Just curious for your latest thoughts there. Thanks a lot.

Question: Randal Konik - Jefferies - Analyst : I guess, Elliott, maybe give us some perspective. I think you spoke about a lot of things you're doing with urgency in China. But maybe give us a progress report on where you see the different geos from all these strategies you're undertaking. Give us some perspective where you're furthest along -- leap furthest along. That would be very helpful. Thanks.