NKE: CEO Meeting Offers Increasing Confidence the Question is "When" Not "If"; Believe Risk/Reward is Attractive

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NKE: CEO Meeting Offers Increasing Confidence the Question is "When" Not "If"; Believe Risk/Reward is Attractive

.48E 0.36E 1.86E and growth will ultimately prove critical, we believe current levels represent an attractive

2028 — — — — 2.31E risk/reward and reiterate our Buy rating on what we see as incremental moves in the right

EBITDA($M) direction, with a potentially emerging catalyst path (potentially troughing estimates, new

(FY MAY) 1Q 2Q 3Q 4Q FY CFO and November's Analyst Day, where we expect management to provide medium

2026 1,117 1,185 738 1,533 4,573 and long-term guidance).

2027 994E 1,260E 1,064E 843E 4,161E

2028 — — — — 4,909E Let us know if you'd like to discuss any of the below in more detail.

Leading with Performance. Throughout the meeting, management reiterated their focus

Market Data & Financial Metrics on leading with Performance product, acknowledging being too reliant on Sportswear over

52-Week Range $40.00 - $80.17 the last five years. See pp. 3 for details on the strategy, what's working, and what remains

a work-in-progress.

Recent China Pressures Have Been Proactive, Coming Inline to Better Than Plan;

Progress Being Made While Full Turn Will Take Time. Management reflected on what

has caused the challenging performance and discussed what they believe the fix to be and

when more region-specific product will begin flowing.

World Cup. We believe NKE sounded confident with their Football performance during the

World Cup and opportunity thereafter.

The Return to DD EBIT Margin. When asked about the cost structure and opportunities

for the incoming CFO, management first noted that margin recapture does not need sales

recapture, reminding us that NKE drove double-digit margins throughout its history at