“We expect Q4 gross margins to be down approximately 400 basis points to 500 basis points, including restructuring charges during the same period last year.”

In context

“reflect the largest impact from our Win Now actions and that the headwinds to revenue and gross margin will begin to moderate from there. We are also navigating through several external factors that create uncertainty in the current operating environment, including geopolitical dynamics, new tariffs, volatile foreign exchange rates, and tax regulations, as well as the impact of this uncertainty and other macro factors on consumer confidence. Our fourth quarter guidance includes our best assessment of these factors based on the data we have available to us today. We expect Q4 revenues to be down in the mid-teens range, albeit at the low end. This includes several points of unfavorable shipment timing in North America, as well as 2 points of negative impact from foreign exchange headwinds. We expect Q4 gross margins to be down approximately 400 basis points to 500 basis points, including restructuring charges during the same period last year. We have included the estimated impact from newly implemented tariffs on imports from China and Mexico. We expect Q4 SG&A dollars to be up low to mid-single digits, including restructuring charges in the prior year. We will continue to tightly manage expenses, while we increase investment to fuel our win now priorities, most notably demand creation. We expect other income and expense, including net interest income, to be $45 million to $55 million for Q4. And we expect the tax rate for the full year to be in the mid-teens range. We are focused on what we can control. And for NIKE at this moment, serving athletes with new product innovation and reigniting brand momentum is what matters most. Our collective experience, as well as the early signals we are seeing with consumers, gives us confi”