In the context of the evolving dynamics related to the coronavirus in China, NIKE, Inc. (NYSE: NKE), is prioritizing the health and safety of our teammates and partners, in cooperation with local authorities. Similar to others in the marketplace, approximately half of NIKE-owned stores have been temporarily closed, with corresponding dynamics across our partner stores. In addition, we are operating with reduced hours and experiencing lower than planned retail traffic in stores that do remain open. In the short term, we expect the situation to have a material impact on our operations in Greater China. However, NIKE’s brand and business momentum with the Chinese consumer remains strong, as reflected in the continued strength of our NIKE digital commerce business.*

“First and foremost, our thoughts are with the people affected and we remain focused on the health and safety of our teammates and partners,” said John Donahoe, President and CEO of NIKE, Inc. “Despite this difficult situation, NIKE’s long-term opportunity to continue to serve consumers in Greater China with inspiration and innovation remains exceedingly strong. At the same time, we continue to have extraordinary brand and business momentum in all other geographies.”*

This situation was not contemplated at the time we provided Q3 guidance during our Q2 fiscal year 2020 earnings call. Dynamics continue to evolve and accordingly we will provide an update on the operational and financial impacts on our Q3 earnings call.*