NIKE, INC. REPORTS FISCAL 2027 FIRST QUARTER RESULTS

• Sport Offense continued to drive momentum across priority sports
• Taking actions to reposition NIKE Sportswear, Jordan Brand, and Greater China
• Announces Pace, an operating model transformation to scale the success of the Sport Offense

BEAVERTON, Ore., Oct. 1, 2026 — NIKE, Inc. (NYSE:NKE) today reported fiscal 2027 financial results for its first quarter ended August 31, 2026.

Executive Commentary

"The Sport Offense is driving measurable progress across our performance business, and we introduced Pace to help us accelerate and scale that momentum across NIKE," said Elliott Hill, President and Chief Executive Officer, NIKE, Inc. "We have more work to do in NIKE Sportswear, Jordan Brand and Greater China, and we're taking deliberate actions to strengthen those businesses the right way for the long-term."

"We delivered first quarter results consistent with our expectations, supported by improved gross margin and disciplined cost management," said Dave Denton, Executive Vice President and Chief Financial Officer, NIKE, Inc. "As we move forward, we remain focused on strengthening the health of our product portfolio, improving productivity across the enterprise and allocating resources with discipline to support long-term shareholder value."

Overall Results

• First quarter revenues were $11.2 billion, down 4 percent on a reported basis and down 5 percent on a currency-neutral basis*
• Gross margin expanded 60 basis points to 42.8 percent
• Selling and administrative expensedecreased 3 percent to $3.9 billion
• Diluted earnings per share was $0.48

First Quarter Income Statement Review

• Revenuesfor NIKE, Inc. were $11.2 billion, down 4 percent on a reported basis and down 5 percent on a currency-neutral basis.
• NIKE Brand revenues were $11.0 billion, down 4 percent on a reported and currency-neutral basis, primarily due to declines in Greater China and EMEA, partially offset by growth in North America.
• NIKE Brand wholesale revenues were $6.8 billion, down 1 percent on a reported and currency-neutral basis, primarily due to declines in Greater China, partially offset by growth in North America.
• NIKE Direct revenues were $4.1 billion, down 8 percent on a reported basis and down 9 percent on a currency-neutral basis, due to a 13 percent decrease in NIKE Brand Digital and a 5 percent decrease in NIKE-owned stores.
• Revenues for Converse were $263 million, down 28 percent on a reported and currency-neutral basis, due to declines across all territories.
• Gross margin expanded 60 basis points to 42.8 percent, primarily due to lower warehousing and logistics costs.
• Selling and administrative expense decreased 3 percent to $3.9 billion.
• Demand creation expense was $1.3 billion, up 5 percent, primarily due to higher brand marketing expense, reflecting higher investment in key sports events.
• Operating overhead expense was $2.7 billion, down 6 percent, primarily due to lower wage-related expense and lower other administrative costs.
• The effective tax rate was 22.7 percent compared to 21.1 percent for the same period last year, primarily due to foreign tax audit settlements recognized in the current year.
• Net income was $0.7 billion, down 2 percent, and Diluted earnings per share was $0.48.

August 31, 2026 Balance Sheet Review

• Inventories for NIKE, Inc. were $7.8 billion, down 3 percent, primarily reflecting shifts in product mix.
• Cash and equivalents and Short-term investments were $8.4 billion, down approximately $0.2 billion, as cash generated by operations was more than offset by cash dividends and capital expenditures.

Shareholder Returns

NIKE has a strong track record of returns to shareholders. In the first quarter, the Company returned approximately $610 million to shareholders through dividends, up 3 percent from the prior year.

Recent Developments

Pace is an operating model transformation to accelerate and scale the success of the Sport Offense. The program includes and builds upon the previous cost realignment plan announced in March 2026. Pace includes efforts to modernize NIKE's global supply chain, the establishment of a new campus in India to fuel its enterprise capabilities, a realignment to three geographies, and further streamlining of the organization to reduce costs.

NIKE expects Pace to deliver approximately $2.5 billion in cumulative savings through fiscal 2031, with approximately $1.0 billion of pre-tax charges, primarily consisting of employee-related costs, through fiscal 2031, in addition to approximately $0.3 billion of severance costs recognized in fiscal 2026. NIKE expects approximately $0.3 billion to be recognized in fiscal 2027.

The savings estimate is stated before the expected pre-tax charges described above and any future reinvestment. The expected savings, pre-tax charges and future cash expenditures are estimates and are subject to a number of assumptions, including local law requirements in various jurisdictions. Actual savings, charges and cash expenditures may differ, possibly materially, from these estimates.

Outlook

• Revenuesare expected to decline high-single digits in fiscal 2027.
• Effective tax rate for fiscal 2027 is expected to be in the mid-20 percent range, subject to changes in earnings mix and discrete tax items.
• Adjusted Diluted earnings per share** is expected to be in the range of $1.15 to $1.35, which excludes approximately $0.15 of restructuring expenses related to Pace for fiscal 2027.

Conference Call

NIKE, Inc. management will host a conference call beginning at approximately 2:00 p.m. PT on October 1, 2026, to review fiscal first quarter results. The conference call will be broadcast live via the Internet and can be accessed at http://investors.nike.com. For those unable to listen to the live broadcast, an archived version will be available at the same location through approximately 9:00 p.m. PT, October 29, 2026.

About NIKE, Inc.

NIKE, Inc., based near Beaverton, Oregon, is the world's leading designer, marketer and distributor of authentic athletic footwear, apparel, equipment and accessories for a wide variety of sports and fitness activities. Converse, a wholly-owned NIKE, Inc. subsidiary brand, designs, markets and distributes athletic lifestyle footwear, apparel and accessories. For more information, NIKE, Inc.'s earnings releases and other financial information are available on the Internet at http://investors.nike.com. Individuals can also visit http://news.nike.com and follow @NIKE.

Forward-Looking Statements

This press release contains forward-looking statements regarding our expectations of our future results and our strategy, including our fiscal 2027 outlook and the program, which involve risks and uncertainties that could cause actual results to differ materially. These risks and uncertainties include, among others, the risk that NIKE is not able to realize anticipated cost savings in the amounts or within the timeframes expected, or at all, risks related to the preliminary nature of the estimates of the charges to be incurred and future cash expenditures to be made in connection with the program and the possibility that those estimates may change in amount or timing as NIKE refines the estimates over time, risks related to any delays in the timing for implementing the program, including as a result of local law requirements, or potential disruptions to NIKE's business, operations or workforce as it executes on the program, and other factors that may cause NIKE to be unable to achieve the expected benefits of the program, as well as the risks and uncertainties detailed from time to time in reports filed by NIKE with the U.S. Securities and Exchange Commission (SEC), including Forms 8-K, 10-Q and 10-K.

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