Brooke Roach's questions to NIKE (NKE) leadership • Q1 2026
Question
Brooke Roach asked about the traffic headwinds in Nike Digital, specifically how much pressure is due to the strategic reduction in promotions versus other factors, and what milestones to watch for its return to profitable growth.
Answer
President and CEO Elliott Hill emphasized elevating and growing the entire marketplace, not just Nike Direct digital commerce, to serve consumers across all channels with innovative product and tailored assortments. EVP and CFO Matt Friend confirmed that the double-digit organic traffic decline in Nike Digital was primarily due to repositioning actions in FY26, including reduced promo days, improved markdown rates, and less paid media. He noted EMEA and North America are furthest ahead in this repositioning. Matt Friend indicated that while Direct is not expected to return to growth this fiscal year, it is being set up to be a healthier, more profitable part of the business long-term, with wholesale momentum serving as an early indicator of success.