The following is a summary of the NIKE, Inc. (NKE) Q2 2025 Earnings Call Transcript:

Financial Performance:

• NIKE reported a decrease in Q2 2025 revenues by 8% on a reported basis and 9% on a currency-neutral basis.

• Gross margins declined by 100 basis points to 43.6%, affected by higher markdowns and wholesale discounts to clear inventory.

• Earnings per share was reported at $0.78 for the quarter.

Business Progress:

• The company has been initiating several strategic actions to stabilize the business and rekindle brand momentum, including refocusing on sport-centric products, enhancing brand marketing, and re-engaging wholesale partners.

• Immediate focus on getting back to leveraging deep sport insights and innovations.

• Plans to rebalance resources to empower teams on the ground in key countries and cities.

Opportunities:

• NIKE is refocusing on sport and is set to drive new product innovations and strong marketing initiatives centered around sports moments.

• The company is also rebalancing its marketplace strategy, moving away from performance marketing to building organic traffic and improving brand presence both online and offline.

Risks:

• Recent shift to a heavier reliance on a few sportswear silhouettes and performance marketing for digital sales is now being corrected, acknowledging past strategic missteps.

• Acknowledged need for 'significant reduction in weeks of supply' for classic footwear franchises, indicating a potential period of readjustment and reduced revenues in the near term.

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