“Looking ahead, we believe that the fourth quarter will reflect the largest impact from our Win Now actions and that the headwinds to revenue and gross margin will begin to moderate from there.”

In context

“scounts to liquidate aged inventory. We expect these actions will continue through the first half of fiscal 2026. Last, when we get back to a steady flow of new product at scale, improve brand engagement, reposition our NIKE Digital business to complement our wholesale partners, and return to a healthy and clean marketplace. We expect our wholesale business to return to growth. Each of our geographies have made varying levels of progress on each of these actions, and as a result are working against different timelines. But when taken all together, these are the building blocks for NIKE to return sustainable, profitable growth. Now, I'll turn to our fourth quarter guidance. Our second half plan is in line with what we communicated last quarter, with some shifts occurring between Q3 and Q4. Looking ahead, we believe that the fourth quarter will 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”