“In the second half, we then expect to see a modest headwind to revenue as we lap aggressive clearance activity in the prior year.”

In context

“ly around the corner of our product portfolio transition. In fiscal '25, we made significant progress managing down our classic footwear franchises, with year-over-year declines of more than 20%. In Q4, these declines accelerated to more than 30%, representing almost a $1 billion headwind to revenue. We also finished Q4 down approximately 10 points from the peak as a percent of our total footwear mix. We expect these headwinds to continue through the first half of fiscal '26, with signals that the Air Force 1 is stabilizing while we plan for larger reductions for the Dunk. We remain on track for a healthy and clean market by the end of the first half of fiscal '26. Over the next 2 quarters, NIKE will continue liquidating excess inventory through our value stores and select value partners. In the second half, we then expect to see a modest headwind to revenue as we lap aggressive clearance activity in the prior year. We continue to expect Digital traffic to be down double digits in fiscal '26 as we reposition NIKE Digital as a full-price model and reduce the mix of our classic footwear franchises. At the same time, we see encouraging signals of progress in the marketplace with our wholesale partners. As Elliott said, our holiday order book is up versus the prior year with growth in North America, EMEA and APLA partially offset by Greater China. We expect SG&A to grow low single digits in fiscal '26. We are investing to reignite growth in the business, particularly demand creation and [indiscernible] sports and commercial offense. At the same time, we recognize that SG&A has deleveraged relative to historical sales growth with improving gross margins and disciplined expense management over time. We hav”