Brooke Roach

Frank cited color and activation learnings on the new look of yoga, and said the traffic decline was broad-based across all demographics.

Meghan outlined full-price progression: meaningful inflection Q1 vs Q4, approximately flat Q2, flipping positive H2. Markdowns were +130bps in Q4 and +60bps for FY2025, expecting modest full-year improvement in FY2026 driven by H2.

Meghan confirmed meaningful full-price inflection from Q4 into Q1. Cited positive response to Unrestricted Power, ThermoZen, ShowZero, and run capsule. Employee purchases picking up as new product flows in.

Calvin detailed balanced strategy across performance activities and lifestyle. Store curation tests in L.A. and Miami showing good results with de-assorting to highlight newness. New web design giving teams more storytelling levers online.

Calvin expressed confidence the shift from 23% to 35% new styles will offset core franchise pressure, especially in social and lounge. Agility improvements will enable faster chasing into successful items.

Calvin noted market share gains in premium activewear and strong guest response to newness but acknowledged dissatisfaction with U.S. growth level. Canada not seeing the same cautious consumer behavior.

Meghan quantified tariff impact at 20bps headwind from China and Mexico imports, noting they're closely monitoring and would look at cost structure and pricing if environment changes.

Calvin shared strong engagement metrics including thousands registering for Membership Madness and 15,000 sign-ups for community activations with waiting lists of over 1,000.

Frank confirmed marketing spend ticking up to approximately 5.5% of sales in FY2024 from 4.5-5% historical as brand campaigns maintained despite top-line pressure. McDonald noted ROAS-measured investments across community events, ambassador relationships, and mid/top-of-funnel. U.S. unaided brand awareness moved to 36%. Reframed lapsed guest strategy as revenue-per-guest opportunity with existing loyal guests rather than reacquisition challenge.

Jim said they will stay within the existing economic model; Hartshorn confirmed the 10-15 bps per 1% of comp flow-through model still holds.

Sheehan declined to quantify specific oil price assumptions but confirmed guidance estimates based on DOE projections, with potential for additional pressure if fuel prices rise materially.

Conroy described modernization of creative messaging, media mix changes, and more events. Said they are in very early stages of contemporizing the Ross and DD's brands with more initiatives coming.

Conroy confirmed customer count growth broad-based across income and age. Hartshorn outlined long-term algorithm: 5% new store growth + 3-4% comp productivity, 3-4% SG&A leverage point, ~2% buyback = 8-10% long-term EPS growth.

Conroy said strategy is to maintain umbrella under traditional retailers. AUR increase was modest with transactions still biggest comp driver. No significant footfalls from pricing creating massively increased markdowns.

No change in income cohorts. Hispanic-heavy stores underperformed especially in June and Southern California, but saw a bounce back in July.

Conroy said assortment flexibility varies by item and season. Vendor resourcing from China is underway but takes months. Country-of-origin shifts are a 2026 adjustment, not 2025.

Hartshorn confirmed DD's outperformed Ross all year and newer markets are improving, but DD's saw a similar January/February slowdown as Ross.

medium

Denton said guidance assumes China revenue worsens for the rest of the year; Hill outlined the digital cleanup, physical-retail investment and locally designed product.

Elliott said Air Force 1 and AJ1 have stabilized with month-to-month improvement in full-price realization; Dunks still need work. He cited strong launches in AJ11 Gamma, AJ5 Wolf Grey, and Air Max 95 as green shoots of the Sportswear team moving to offense.

Matt said traffic weakness is mostly from the strategic repositioning actions and reduced paid media; direct will not return to growth in FY26 but should become a healthier, more profitable part of the business longer term.

Elliott said China changes will take time, citing monobrand structure differences, new retail concepts, geo Express Lane, and a 40-year operating history there.

Elliott expressed confidence in the long-term NSRL pipeline and highlighted near-term apparel innovation like 24/7 and sportswear silhouettes Vomero 5, P6000, and Shox.

Elliott detailed North America under new leader Tom Petty focusing on marketplace cleanup, wholesale rebuilding, and running specialty investment. For China, emphasized local product creation (GEO Express Lane), sports research lab, and resetting NIKE retail concepts with Topsports and Pou Sheng.

Friend said China traffic was soft across all channels and NIKE is not immune to weak consumer demand; the market is promotional and wholesale rose 10% partly on shipping timing, but he gave no channel inventory levels.

Ernie cited two systematic planning changes to monitor the issue but declined to specify them.

Klinger quantified the $0.07 fuel holdback but declined to break out specific gross margin components. Assuming current diesel rates remain flat for remainder of year.

Ernie cited glutted market allowing buyers to wait for best deals, 1,400 tenured merchants trained to prioritize value and margin simultaneously, strong vendor relationships yielding first call on excess inventory, excellent liquidity position entering the year, and tariff confusion indirectly benefiting buying opportunities.

Ernie cited branded value across good-better-best, pleasant treasure hunt shopping experience, and lack of competition serving the same mission. John confirmed consistent monthly cadence with both transactions and basket up, ticket driving basket. Ernie added merchants aggressively shop competition to maintain out-the-door retail gap.

Ernie explained pricing is deal-by-deal, not top-down. Buyers work retail-backwards from competitor out-the-door prices. Customer value perception has improved over past couple years.

Ernie explained buyers work backward from retail pricing to cost, not factoring in tariffs directly. John said a small shrink improvement is baked into FY2026 plans.

Ernie emphasized direct imports are a very small portion of business, they have diversified out of China, and their flexible model maintains value gap regardless of tariffs. Tariffs could actually create buying opportunities.

Patrice cited strengthening brand equity with Germany/Italy/Spain strong and declined summer QTD; Justin reaffirmed low-to-mid-single-digit Europe growth for the year. Partial.

Patrice outlined 3-pronged wholesale strategy: win with luxury players, digital wholesale, and key doors. Justin guided North America wholesale up low single digits with prudence for macro and potential industry consolidation.

Justin said 3-year plan off to strong start. Will continue to balance margin expansion with strategic investments in each year. Approach outlined at September Investor Day unchanged. Not guiding beyond Q4 today but confident in broad-based momentum and brand strength.

Justin emphasized flexibility in price architecture to target value-oriented subsegments without walking back brand guardrails. Patrice added that storytelling appeals broadly including value-sensitive consumers, and that core icons plus high potential categories resonate across consumer segments.

Patrice said direction of travel is reduced promotions. Like-for-like pricing to stay stable. Has flexibility to adjust given 7 years of AUR progress.

Todd provided 5 confidence performance indicators: (1) TAM through customer acquisition lens with single-digit NA share, (2) 2.9M new customers in quarter with compounding retention, (3) growth from core leather goods balanced across families (<10% each), (4) AUR and units both mid-teens with AUR 5-10x below European luxury, (5) units still 20% below pre-pandemic globally and 25% in NA.

Joanne confirmed strong acquisition and retention across all age groups and income cohorts with no meaningful difference. Broad consumer platform winning across all segments.

Joanne recapped breakout year and confirmed acceleration into FY26. Todd highlighted Kisslock bag heat with 81,000 customer notifications and Sarah Jessica Parker viral moment.

Todd noted units still below 2019 levels but expects unit growth to build from customer acquisition. Emphasized not pumping units via promotion, selling less on promotion creates sustainable growth.

Joanne cited brand building capabilities working globally with strong broad-based performance across channels and city tiers. Todd highlighted distribution expansion opportunity in smaller cities.