*

Non-GAAP financial measure. See additional information in the accompanying Divisional Revenues.

NIKE, Inc.

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

THREE MONTHS ENDED

%

SIX MONTHS ENDED

%

(In millions, except per share data)

11/30/2024

11/30/2023

Change

11/30/2024

11/30/2023

Change

Revenues

$

12,354

$

13,388

-8

%

$

23,943

$

26,327

-9

%

Cost of sales

6,965

7,417

-6

%

13,297

14,636

-9

%

Gross profit

5,389

5,971

-10

%

10,646

11,691

-9

%

Gross margin

43.6

%

44.6

%

44.5

%

44.4

%

Demand creation expense

1,122

1,114

1

%

2,348

2,183

8

%

Operating overhead expense

2,883

3,032

-5

%

5,705

6,079

-6

%

Total selling and administrative expense

4,005

4,146

-3

%

8,053

8,262

-3

%

% of revenues

32.4

%

31.0

%

33.6

%

31.4

%

Interest expense (income), net

(24

)

(22

)

—

(67

)

(56

)

—

Other (income) expense, net

(8

)

(75

)

—

(63

)

(85

)

—

Income before income taxes

1,416

1,922

-26

%

2,723

3,570

-24

%

Income tax expense

253

344

-26

%

509

542

-6

%

Effective tax rate

17.9

%

17.9

%

18.7

%

15.2

%

NET INCOME

$

1,163

$

1,578

-26

%

$

2,214

$

3,028

-27

%

Earnings per common share:

Basic

$

0.78

$

1.04

-25

%

$

1.48

$

1.99

-26

%

Diluted

$

0.78

$

1.03

-24

%

$

1.48

$

1.97

-25

%

Weighted average common shares outstanding:

Basic

1,486.8

1,520.8

1,492.3

1,524.6

Diluted

1,490.0

1,532.1

1,495.9

1,537.7

Dividends declared per common share

$

0.400

$

0.370

$

0.770

$

0.710

NIKE, Inc.

CONSOLIDATED BALANCE SHEETS

(Unaudited)

November 30,

November 30,

% Change

(Dollars in millions)

2024

2023

ASSETS

Current assets:

Cash and equivalents

$

7,979

$

7,919

1

%

Short-term investments

1,782

2,008

-11

%

Accounts receivable, net

5,302

4,782

11

%

Inventories

7,981

7,979

0

%

Prepaid expenses and other current assets

1,936

1,943

0

%

Total current assets

24,980

24,631

1

%

Property, plant and equipment, net

4,857

5,153

-6

%

Operating lease right-of-use assets, net

2,736

2,943

-7

%

Identifiable intangible assets, net

259

269

-4

%

Goodwill

240

281

-15

%

Deferred income taxes and other assets

4,887

3,926

24

%

TOTAL ASSETS

$

37,959

$

37,203

2

%

LIABILITIES AND SHAREHOLDERS’ EQUITY

Current liabilities:

Current portion of long-term debt

$

1,000

$

—

100

%

Notes payable

49

6

717

%

Accounts payable

3,255

2,709

20

%

Current portion of operating lease liabilities

481

456

5

%

Accrued liabilities

5,694

5,470

4

%

Income taxes payable

767

358

114

%

Total current liabilities

11,246

8,999

25

%

Long-term debt

7,973

8,930

-11

%

Operating lease liabilities

2,562

2,785

-8

%

Deferred income taxes and other liabilities

2,141

2,343

-9

%

Redeemable preferred stock

—

—

—

Shareholders’ equity

14,037

14,146

-1

%

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

$

37,959

$

37,203

2

%

NIKE, Inc.

DIVISIONAL REVENUES

(Unaudited)

% Change Excluding Currency Changes ¹

% Change Excluding Currency Changes ¹

THREE MONTHS ENDED

SIX MONTHS ENDED

(Dollars in millions)

11/30/2024

11/30/2023

% Change

11/30/2024

11/30/2023

% Change

North America

Footwear

$

3,236

$

3,757

-14

%

-14

%

$

6,448

$

7,490

-14

%

-14

%

Apparel

1,693

1,668

1

%

1

%

3,024

3,147

-4

%

-4

%

Equipment

250

200

25

%

25

%

533

411

30

%

30

%

Total

5,179

5,625

-8

%

-8

%

10,005

11,048

-9

%

-9

%

Europe, Middle East & Africa

Footwear

1,982

2,186

-9

%

-12

%

3,934

4,446

-12

%

-12

%

Apparel

1,136

1,200

-5

%

-8

%

2,129

2,337

-9

%

-10

%

Equipment

185

181

2

%

-1

%

383

394

-3

%

-4

%

Total

3,303

3,567

-7

%

-10

%

6,446

7,177

-10

%

-11

%

Greater China

Footwear

1,203

1,361

-12

%

-14

%

2,449

2,648

-8

%

-8

%

Apparel

472

469

1

%

-3

%

832

870

-4

%

-6

%

Equipment

36

33

9

%

9

%

96

80

20

%

21

%

Total

1,711

1,863

-8

%

-11

%

3,377

3,598

-6

%

-7

%

Asia Pacific & Latin America

Footwear

1,234

1,303

-5

%

-4

%

2,286

2,444

-6

%

-3

%

Apparel

437

437

0

%

0

%

785

808

-3

%

-1

%

Equipment

73

65

12

%

10

%

135

125

8

%

10

%

Total

1,744

1,805

-3

%

-2

%

3,206

3,377

-5

%

-2

%

Global Brand Divisions ²

13

12

8

%

-2

%

27

25

8

%

9

%

TOTAL NIKE BRAND

11,950

12,872

-7

%

-8

%

23,061

25,225

-9

%

-9

%

Converse

429

519

-17

%

-18

%

930

1,107

-16

%

-16

%

Corporate ³

(25

)

(3

)

—

—

(48

)

(5

)

—

—

TOTAL NIKE, INC. REVENUES

$

12,354

$

13,388

-8

%

-9

%

$

23,943

$

26,327

-9

%

-9

%

TOTAL NIKE BRAND

Footwear

$

7,655

$

8,607

-11

%

-12

%

$

15,117

$

17,028

-11

%

-11

%

Apparel

3,738

3,774

-1

%

-2

%

6,770

7,162

-5

%

-6

%

Equipment

544

479

14

%

12

%

1,147

1,010

14

%

13

%

Global Brand Divisions ²

13

12

8

%

-2

%

27

25

8

%

9

%

TOTAL NIKE BRAND REVENUES

$

11,950

$

12,872

-7

%

-8

%

$

23,061

$

25,225

-9

%

-9

%

¹ The percent change has been calculated using actual exchange rates in use during the comparative prior year period and is provided to enhance the visibility of the underlying business trends by excluding the impact of translation arising from foreign currency exchange rate fluctuations, which is considered a non-GAAP financial measure. Management uses this non-GAAP financial measure when evaluating the Company's performance, including when making financial and operating decisions. Additionally, management believes this non-GAAP financial measure provides investors with additional financial information that should be considered when assessing the Company's underlying business performance and trends. References to this measure should not be considered in isolation or as a substitute for other financial measures calculated and presented in accordance with U.S. GAAP and may not be comparable to similarly titled non-GAAP measures used by other companies.

² Global Brand Divisions revenues include NIKE Brand licensing and other miscellaneous revenues that are not part of a geographic operating segment.

³ Corporate revenues primarily consist of foreign currency hedge gains and losses related to revenues generated by entities within the NIKE Brand geographic operating segments and Converse, but managed through the Company's central foreign exchange risk management program.

NIKE, Inc.

EARNINGS BEFORE INTEREST AND TAXES ¹

(Unaudited)

THREE MONTHS ENDED

%

SIX MONTHS ENDED

%

(Dollars in millions)

11/30/2024

11/30/2023

Change

11/30/2024

11/30/2023

Change

North America

$

1,371

$

1,526

-10

%

$

2,587

$

2,960

-13

%

Europe, Middle East & Africa

831

927

-10

%

1,623

1,857

-13

%

Greater China

375

514

-27

%

877

1,039

-16

%

Asia Pacific & Latin America

460

521

-12

%

862

935

-8

%

Global Brand Divisions ²

(1,133

)

(1,168

)

3

%

(2,360

)

(2,373

)

1

%

TOTAL NIKE BRAND ¹

1,904

2,320

-18

%

3,589

4,418

-19

%

Converse

53

115

-54

%

174

282

-38

%

Corporate ³

(565

)

(535

)

-6

%

(1,107

)

(1,186

)

7

%

TOTAL NIKE, INC. EARNINGS BEFORE INTEREST AND TAXES ¹

1,392

1,900

-27

%

2,656

3,514

-24

%

EBIT margin ¹

11.3

%

14.2

%

11.1

%

13.3

%

Interest expense (income), net

(24

)

(22

)

—

(67

)

(56

)

—

TOTAL NIKE, INC. INCOME BEFORE INCOME TAXES

$

1,416

$

1,922

-26

%

$

2,723

$

3,570

-24

%

¹ The Company evaluates the performance of individual operating segments based on earnings before interest and taxes (commonly referred to as "EBIT"), which represents Net income before Interest expense (income), net and Income tax expense. Total NIKE Brand EBIT, Total NIKE, Inc. EBIT and EBIT margin are considered non-GAAP financial measures. Management uses these non-GAAP financial measures when evaluating the Company's performance, including when making financial and operating decisions. Additionally, management believes these non-GAAP financial measures provide investors with additional financial information that should be considered when assessing the Company’s underlying business performance and trends. EBIT margin is calculated as total NIKE, Inc. EBIT divided by total NIKE, Inc. Revenues. References to EBIT and EBIT margin should not be considered in isolation or as a substitute for other financial measures calculated and presented in accordance with U.S. GAAP and may not be comparable to similarly titled non-GAAP measures used by other companies.

² Global Brand Divisions primarily represent demand creation and operating overhead expense, including product creation and design expenses that are centrally managed for the NIKE Brand, as well as costs associated with NIKE Direct global digital operations and enterprise technology. Global Brand Divisions revenues include NIKE Brand licensing and other miscellaneous revenues that are not part of a geographic operating segment.

³ Corporate consists primarily of unallocated general and administrative expenses, including expenses associated with centrally managed departments; depreciation and amortization related to the Company’s corporate headquarters; unallocated insurance, benefit and compensation programs, including stock-based compensation; and certain foreign currency gains and losses, including certain hedge gains and losses.