### Overall ConclusionThis quarter's results met expectations, primarily driven by high single-digit growth in the NIKE Performance business, offset by headwinds from Sportswear, Jordan, and China.

### Key DataRevenue stood at $11.12 billion, down 5% year-over-year (currency-neutral); gross margin was 42.8%, up 60 basis points year-over-year; EPS was $0.48, down 2% year-over-year.

### Business ProgressThe Performance business posted high single-digit growth, with Running, Global Football, Training, Basketball, Tennis, and Golf all achieving double-digit growth. Within Running, the Vomero series nearly tripled its share of the Max cushioning segment, and four new footwear models were launched. Global Football benefited from the World Cup, with club jersey sales seeing high double-digit growth. Basketball launched the Caitlin Clark signature shoe, the largest women's signature shoe release in history. Sportswear revenue declined by low single digits, with Dunk sales halving, creating approximately $200 million in pressure. Jordan revenue fell by mid-single digits and will return to a scarcity model. China revenue declined by 26%, as the company cleans up digital channels and focuses on flagship stores.

### Guidance and OutlookManagement expects full-year revenue to decline by high single digits, with EBIT declining more than revenue. Adjusted EPS guidance is $1.15–$1.35. Q2 faces a 400 basis point year-over-year headwind. The Pace plan is expected to generate approximately $2.5 billion in savings, with costs of about $1 billion, most of which will be realized in FY29–30.

### Risk/Positive SignalsPositive signals: Management expressed strong confidence in Performance business growth and the Pace plan, emphasizing that "Sport Offense is working." Negative signals: Management is cautious about the recovery timeline for China, Sportswear, and Jordan, expecting pressure to persist through FY28.