This Is The Bottom…Sport Working, Margins Turning, EPS Flattening Out

研报英文原文证据摘录

This Is The Bottom…Sport Working, Margins Turning, EPS Flattening Out

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Training, Tennis, and Golf all chipped in to drive Performance up MSD% for FY26.

China Reset Working, Profit Inflection Still On the Table. China revs were -17% CC, but the proof

points underneath are showing through. Running grew MSD%, Football and Tennis were up DD

%, House of Innovation Shanghai posted DD% growth, reset doors continue to comp positive, and

full-price realization is improving on digital. Inventory and units were both down DD% with partner

inventory also cleaner, and mgmt reiterated that profitability bottoms before sales. We believe the

China profit inflection remains underappreciated.

Sportswear/Jordan Streetwear Still the Overhang, But Not Getting Worse. Sportswear was down

DD% with retail sales tracking similarly. Mgmt stated that Nike Sportswear and Jordan streetwear

(~50% of biz) will stay negative through FY27, however will begin to improve by 2H. NKE has already

taken ~$2B out of classics in FY26 and is repositioning with 12+ new styles launching in 2H FY27.

Importantly, the headwind isn't accelerating with the performance business offsetting more of it

each Q, and performance innovations like AeroFit, Mind, and Free are now being pulled into lifestyle

to seed the eventual NSW/Jordan inflection.

Setup Improves Through FY27, with 2H The Real Inflection. Mgmt guided F'1Q27 revs down LSD Randal J. Konik * | Equity Analyst

to MSD with GM slightly positive, SG&A flat, and reiterated flattish EPS over the next three Qs ex +1 (212) 708-2719 | rkonik@jefferies.com

tariff recovery. Looking further out, we model F'4Q27 revs up LSD% with SG&A flat as NKE laps WC Carlos Gallagher * | Equity Associate

spend. The path back to higher EBIT margins is intact, in our view.