“Due to these actions, and as we continue to reduce investment in paid media, we expect digital traffic to be down double digits in fiscal 2026.”

In context

“the contribution of newness as a percentage of our overall seasonal assortment, including new models, new colors, and new materials. At the same time, we are moving fast to right-size the contribution of our classic footwear franchises. In regards to this transition, we are making progress. In the last quarter of this fiscal year, we expect our classic footwear franchises will be down by more than 10 points as a percent of our total footwear mix. We intend to drive this mix lower in fiscal 2026 with total units planned down double digits with the most aggressive actions on the Dunk. Second, we are repositioning NIKE Digital within an integrative marketplace. To do this, we are reducing promotional days, reducing markdown rates, and shifting closeout liquidation to our NIKE factory stores. Due to these actions, and as we continue to reduce investment in paid media, we expect digital traffic to be down double digits in fiscal 2026. Gradually, we expect organic traffic to stabilize and grow with new product launches and our increased brand marketing investments. Third, we are cleaning up the marketplace. For NIKE Digital, we are tightening our buys to support a full-price business model. For NIKE factory stores, we are increasing markdowns to drive velocity of higher volumes of closeout inventory. And for our wholesale partners, we are making investments in sales-related returns, reducing forward supply, and providing higher wholesale discounts 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 r”