NIKE (NKE) risk factors: FY2026 10-K

1. Global economic conditions have in the past had and could in the future have a material adverse effect on our business, operating results and financial condition.
2. Our products, services and experiences face intense competition.
3. Economic factors beyond our control, and changes in the global economic environment, including fluctuations in and uncertainty regarding inflation and currency exchange rates, could result in lower revenues, higher costs and decreased margins and earnings.
4. We may be adversely affected by the financial health of our wholesale customers.
5. Climate change, extreme weather conditions and disasters may have an adverse impact on our business and results of operations.reworded
6. Globally, expectations and regulations regarding corporate responsibility and sustainability-related topics continue to evolve and diverge, and our ability to meet these requirements and expectations could negatively impact our operating results and financial condition.reworded
7. Our financial condition and results of operations have been, and could in the future be, adversely affected by a pandemic, epidemic or other public health emergency.

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1. Failure to maintain our reputation, brand image and culture could negatively impact our business.
2. If we are unable to anticipate consumer preferences and develop new products, we may not be able to maintain or increase our revenues and profits.
3. We rely on technical innovation and high-quality products to compete.
4. Our business is affected by seasonality, which could result in fluctuations in our operating results.
5. Failure to continue to obtain or maintain high-quality endorsers of our products could harm our business.
6. Failure to accurately forecast consumer demand has in the past led and could in the future lead to excess inventories or inventory shortages, which has in the past resulted and could in the future result in decreased operating margins, reduced cash flows and harm to our business.
7. Our NIKE Direct operations have required and will continue to require a substantial investment and commitment of resources and are subject to numerous risks and uncertainties.
8. If the technology-based systems, applications and platforms that give our consumers the ability to shop or interact with us online do not function effectively, our operating results, as well as our ability to grow our digital commerce business globally or to retain our customer base, could be materially adversely affected.
9. We rely significantly on information technology to operate our business, including our supply chain and retail operations, and any failure, inadequacy or interruption of that technology could harm our ability to effectively operate our business.
10. We are subject to the risk our licensees may not generate expected sales or maintain the value of our brands.
11. Consolidation of retailers or concentration of retail market share among a few retailers has increased and may continue to increase and concentrate our credit risk and impair our ability to sell products.reworded
12. If our counterparty financial institutions default on their obligations to us or fail, we may incur significant losses.reworded
13. We rely on a concentrated base of contract manufacturers to supply a significant portion of our footwear products.reworded
14. The success of our business depends, in part, on high-quality employees, including key personnel as well as our ability to maintain our workplace culture and values.
15. The market for prime real estate is competitive.
16. Our business operations and financial performance could be adversely affected by changes in our relationship with our workforce or changes to United States or foreign employment regulations.

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1. Our international operations involve inherent risks which could result in harm to our business.
2. Our products are subject to risks associated with overseas sourcing, manufacturing and financing.
3. Changes to U.S. or other countries' trade policies and tariff and import/export regulations or our failure to comply with such regulations may have a material adverse effect on our reputation, business, financial condition and results of operations.Tariffs
4. Our success depends on our global distribution facilities.

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1. We are subject to a complex array of laws and regulations and litigation and other legal and regulatory proceedings, which could have an adverse effect on our business, financial condition and results of operations.
2. Failure to adequately protect or enforce our intellectual property rights could adversely affect our business.
3. We are subject to data security and privacy risks that could negatively affect our results, operations or reputation.
4. We could be subject to changes in tax rates, adoption of new tax laws or regulations, or changes in the interpretations thereof, additional tax liabilities or increased volatility in our effective tax rate.
5. Failure of our contractors or our licensees' contractors to comply with our code of conduct, local laws and other standards could harm our business.

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1. Our financial results may be adversely affected if substantial investments in businesses and operations fail to produce expected returns.
2. The sale of a large number of shares of common stock by our principal shareholder could depress the market price of our common stock.
3. Changes in our credit ratings or macroeconomic conditions may affect our liquidity, increasing borrowing costs and limiting our financing options.
4. If our internal controls are ineffective, our operating results could be adversely affected.
5. If our estimates or judgments relating to our critical accounting estimates prove to be incorrect, our operating results could be adversely affected.
6. Anti-takeover provisions may impair an acquisition of the Company or reduce the price of our common stock.
7. We have in the past failed and may in the future fail to meet market expectations, which has caused and could in the future cause the price of our stock to decline.

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