Nike, Inc.: Ground Game Still Needs Work: 10-K Takeaways

Research evidence excerpt

Nike, Inc.: Ground Game Still Needs Work: 10-K Takeaways

Deutsche Bank

Research

Rating Company Date

Hold Nike, Inc. 16 July 2026

North America Reuters Bloomberg Rating Hold

United States NKE.N NKE US Price target (USD) 45.00 Price at 15 Jul 26 42.77

52-week range 79.24 – 15.34

Consumer

Apparel, Footwear & Textiles Valuation & Risks

Ground Game Still Needs Work: 10-K

Takeaways KrisztinaResearchKataiAnalyst

+1-212-250-0590

With sentiment broadly negative into NKE’s 4Q print, we would characterize

Nick Breckenridge results as right down the fairway with something for both the bulls and the bears, Research Associate

which was evident in NKE’s 10-K (filed yesterday). NKE’s 10-K showed that unit +1-212-250-9179

sales were still tepid (DBe -5% vs. -2% in 3Q), SSS decelerated across nearly every

region, and EBIT per employee deteriorated (~$0.4M in 2026 vs. $0.5M in 2025 Jessica Taylor

Research Associate and 2019). That said, we also saw several signs of encouragement, namely: 1) we

+1-212-250-3165

estimate total NKE brand ASPs grew 3% in 4Q26 (the first time in 5+ quarters),

driven primarily by apparel; and 2) revenue per employee grew 7% YOY in 2026

to ~$0.6M, well above 2019 levels (~$0.5M), though largely due to a 6% YOY

decline in employees. See 10-K Takeaways in Pictures on Pages 2-3. Key changes

Price target (USD) 43 45 5%

Other Notable 10-K KPIs:

• Total retail stores decreased 4% YOY (or by 46), driven by a 14% Source: Deutsche Bank

decrease at both Nike Brand in-line stores and Converse.

• Subsequent to May 31, 2026, NKE received substantially all of the

remaining IEEPA tariff receivable that had been booked in accounts

receivable.

• Total sales-related reserves recorded within accrued liabilities decreased

to $1.6B in 2026 (vs. $1.8B in 2025).

What the Bulls vs.