Footwear Insight - Business Report Quarterly

Sales: -2% to $12.6 billion in Q4 ended May 31 with North American revenues down by 1% to $5.27 billion. Annual sales, meanwhile, were flat at $51.36 billion as FY home market revenues dipped by 1% to almost $21.4 billion. Footwear sales, -2% in Q4 to $8.24 billion; +1% to $33.4 billion in FY. Operating profit: +39% in Q4 to $1,726 million; +8% to $6.7 billion for FY. Gross margin: +110 basis points to 44.7% in Q4 due to strategic price increases, lower ocean freight costs and improved supply chain efficiency, partially offset by lower margins in Nike Direct, unfavorable channel mix, and currency fluctuation impact. Annual gross margin grew by 30 basis points to 32.3%. Key developments: Although results are expected to be 'challenging' through November, turnaround has commenced with an accelerated focus on newness, innovation and performance. Also, will introduce a "refreshed line-up" of under $100 retail footwear styles. Expects sales contribution from new products to more than double at end of FY25 from start of FY24. Excited about new footwear concepts being introduced between December and May 2025. Is working on next two iterations of Dynamic Air that debuted earlier this year. Realized sales growth in basketball, fitness, and kids in Q4 that were offset by declines in Jordan lifestyle products. Says it has experienced double-digit order book growth from North American run specialty partners for both Holiday '24 and Spring '25. Sales: Total Q1 revenues improved by 21% in Swiss francs to approximately $543.7 million. Americas' sales grew by 22% to the equivalent of $352.6 million. Footwear sales, meanwhile, stepped 29% higher in francs to about $518.6 million. Direct-to-consumer sales increased by 39% to about $203.8 million. Operating profit: -9.0% in francs to about $41.2 million. Gross margin: +140 basis points to 59.7%. Key developments: Targeting net sales growth of at least 30% on a constant- currency basis to at least 2.29 billion Swiss francs, or about $2.38 billion. Sizing has been updated on most items in apparel collection. A new Cloudsurfer footwear style debuts later this summer. Intends to operate 30 stores across China by end of fiscal year. Sales: Reported sales in euros fell by 3.9% to the equivalent of $2.25 billion. Q1 footwear revenues rose by 3.1% to the equivalent of $1.26 billion. Americas' sales increased by 1.0% to approximately $845.2 million. Operating profit: -9.4% in euros to approximately $170.1 million. Gross margin: +100 basis points to 47.5% despite 300 basis points of negative pressure from currency fluctuation. Key developments: First global brand advertising campaign debuted in Paris in April. Launched its first-ever signature lifestyle shoe, LaFrancé, for LaMelo Ball. Sportstyle segment being spearheaded by terrace style called Palermo and skate model Suede XL. Sales: +12.5% in Q1 to a record $2.25 billion as international rose by 15%, to account for 65% of period revenues, and U.S. increased by 7.8%. Wholesale improved by 9.8% with U.S. up by 7.7% and international by 11%. Operating profit: +34% to $298.8 million. Gross margin: +360 basis points to 52.5% on lower freight costs and a favorable product mix. Company said customers "sought out our higher margin technology-infused products." Key developments: Remains confident in hitting $10 billion in annual sales by 2026. Intends to stress innovation (Arch Fit, Max cushioning, Hyperburst) around its comfort technologies to consumers and expects to see higher ASPs (average selling prices) this year. e 12 brand and retail capsules in the Brand & Retail Scorecard are intended to offer a deeper dive into the financials of some of the companies that are featured in the Brand & Retail Index in each issue. e 12 companies highlighted in the scorecard capsules will be rotated quarterly. 14 Footwear Insight Business Report Quarterly ~ Q2 July 8 2024 footwearinsight.com BRAND & RETAIL SCORECARD QUARTER 2 ENDING 6/24/24

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