Nike (NKE) official guidance

We expect Pace will deliver approximately $2.5 billion in savings.

Finally, with respect to adjusted earnings per share, we currently expect fiscal 2027 adjusted earnings per share to be in the range of $1.15-$1.35. This range excludes approximately $0.15 of impact from the Pace program.

We also expect SG&A to remain down year-over-year as we continue to identify opportunities to improve efficiencies, simplify operations, and increase productivity across the organization.

We currently expect EBIT to decline by a greater percentage than revenue.

We also expect the cost to implement Pace will be approximately $1 billion over the program's life, which is in addition to approximately $300 million of severance related costs in fiscal 2026. We have begun taking actions and expect the majority of the program savings to be realized in fiscal years 2029 and 2030, with the full realization of the program to continue into fiscal year 2031.

But from a specific guidance perspective, the guidance range that I just provided to you assumes that China actually gets worse from a revenue perspective for the balance of this year.

For fiscal 2027, we currently expect revenues to decline in the high single-digit range.

Effective tax rate for fiscal 2027 is expected to be in the mid-20 percent range, subject to changes in earnings mix and discrete tax items.

NIKE expects approximately $0.3 billion to be recognized in fiscal 2027.

NIKE expects Pace to deliver approximately $2.5 billion in cumulative savings through fiscal 2031, with approximately $1.0 billion of pre-tax charges, primarily consisting of employee-related costs, through fiscal 2031, in addition to approximately $0.3 billion of severance costs recognized in fiscal 2026.

Revenues are expected to decline high-single digits in fiscal 2027.

We expect Q1 SG&A dollars to be flat, with operating overhead declining while demand creation grows high single digits as we invest into the World Cup.

We reiterate our expectation for earnings to be flattish over that time period, excluding the benefit from tariff recovery.

We expect gross margin in Q1 to be slightly positive.

We will continue to invest in how we show up as a premium brand in both digital and physical retail, including a plan to elevate 50% of our Nike Direct-owned fleet by the end of the fiscal year.

We expect Q1 SG&A dollars to be flat, with operating overhead declining while demand creation grows high single digits as we invest into the World Cup.

We expect Q1 SG&A dollars to be flat, with operating overhead declining while demand creation grows high single digits as we invest into the World Cup.

We expect Sportswear and Jordan street wear to continue to be negative this fiscal year with improvement expected in the back half.

We now expect revenue to be down low to mid single digits, with Q2 having a sequential deceleration from Q1 due to some unique factors equating to a multipoint headwind, including higher digital promotions in the prior year in EMEA and timing of North America wholesale shipments.

Specifically for the first quarter, we expect reported revenues to be down low to mid single digits with no expected benefit from foreign exchange and currency neutral revenue growth consistent with recent performance.