NKE: Lowering Numbers Post 4Q as Turnaround Takes More Time; Remain Sidelined

研报英文原文证据摘录

NKE: Lowering Numbers Post 4Q as Turnaround Takes More Time; Remain Sidelined

rst region touched

by the "Win Now" actions above, it is showing the earliest signs of positive results. The key debate

for the region today is whether the business can continue to grow as it starts to lap significant

wholesale sell-in given commentary on weakening sell-through trends on its 4Q26 earnings call

following a step-down in overall demand in mid-April.

3. ...But International Springing New Leaks. After several years of very strong growth, China slowed

materially post-COVID on a number of issues. Local companies like Anta and Li Ning have raised

their own game in terms of sneaker technology, are able to price well below Nike—and have

benefited from a cultural shift to China-centric companies. At the same time newer competitors

like On and Hoka have also captured share in China on the rise of trail and road running, at the

expense of basketball. These companies' focus on sport/technology has led to lifestyle success as

well—mirroring broader trends in athletic participation. Margin recapture potential is significant

—with operating margins down (1,700)bps over the last five years and (950+)bps over the last

three. In EMEA, inventory levels are significantly elevated (was +20% in 3Q26 against constant

currency sales of -7% and remains elevated in 4Q26), and there remains significant uncertainty on

the brand's ability to recapture lost share, particularly in specialty channels which have replaced the

brand with competitors that are driving healthy and profitable sales.

4. Limited Catalysts Between Now and "Win Now" Actions Finishing (End of CY26) and "Sports

Offense" (Spring 2027). The timeline to finish the Win Now actions by the end of calendar