Q : How are you planning the near-term investments in the business, and what are the most important factors in phasing these investments to return to growth? A : We are focusing on putting sport at the center of everything we do, shifting dollars from performance marketing to brand marketing, and investing in our fields of play. We will focus on five sports: running, basketball, training, football, and sportswear, and concentrate efforts on three key countries and five key cities. This approach will guide our investments over the next 18 to 24 months.

Q : How much incremental pressure do you expect on 2026 sales due to the accelerated work around lifestyle, and when will newness gain sufficient scale to offset that pressure? A : We are reducing inventory in the marketplace to open up shelf space for new innovative products. We have three brandsNIKE, Jordan, and Conversecovering various sports and price points. Our product pipeline, especially in running, training, and sportswear, is strong, and we are confident in the newness and innovation coming to market.

Q : What specific actions will you take in North America and Greater China to accelerate these initiatives over the next 12 months? A : In North America, we have a new leader, Tom Petty, focusing on cleaning up the marketplace, building wholesale relationships, and investing in the brand. In Greater China, we are investing in product innovation and local product creation, making bold brand statements, and resetting our marketplace with our partners to drive growth.

Q : How are you balancing short-term earnings with long-term investments, and is there a limit to the actions you are willing to take to reset the marketplace? A : We are acting with urgency to put sport back at the center of our strategy. We are investing in product innovation, brand marketing, and marketplace management. While these actions may create short-term headwinds, they are necessary for long-term sustainable growth. We are confident in our strategy and the moves we are making to drive the brand forward.

For the complete transcript of the earnings call, please refer to the full earnings call transcript .

This article first appeared on GuruFocus .