Sees Q1 gross margin down 350-425 basis points. Sees Q1 SG&A dollars up low-single digits. Sees Q1 tax rate 19%-20%. Sees FY26 SG&A up low single digits. Says results in Q4 and FY25 not up to the Nike (NKE) standard. Says made progress this quarter in rebalancing sportswear and performance. Says sees a clear path to recovery ahead. Says a strong signal of progress is momentum in Nike performance product. Says momentum and confidence are building in North America. Says China will take longer due to the unique characteristics of the marketplace. Says while in line with expectations, not pleased with financial performance. Says expects the headwinds to revenue and gross margin to begin to moderate from here. Says traffic remains challenged. Says tariffs represent a new and meaningful cost headwind. Says China represents roughly 16% of the footwear imported into the U.S. Says expects this to reduce to the high-single digit range by the end of FY26. Says implemented a surgical price increase in the U.S. Says with the new tariff rates in place, estimates a gross incremental cost increase to Nike of approximately $1B. Says intends to fully mitigate the impact of these headwinds over time. Says expects these headwinds to continue through the first half of FY26. Says expects to see a modest headwind to revenue as the company laps aggressive clearance activity in the prior year. Comments taken from Q4 earnings conference call.

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