Upon Further Review: Nike (10/12/26)
Nike's new CFO had six weeks to build his first outlook, and he used it to reset expectations rather than defend them. We also got the newly announced Pace program that targets approximately $2.5 billion of cumulative savings, with the majority not arriving until FY29 and FY30. Pace is by far the largest restructuring program in company history with total pre-tax charges of $1.3 billion that are roughly three times the 2023 program and six times 2009. We note that the 2023 program was prior CEO John Donahoe's last ditch effort to keep his job – will this be the same thing for current CEO Elliott Hill?