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Yahoo
11 hours ago
- Business
- Yahoo
Nike Inc (NKE) Q4 2025 Earnings Call Highlights: Navigating Challenges with Strategic Initiatives
Revenue: Down 12% on a reported basis and 11% on a currency-neutral basis for Q4. NIKE Direct: Declined 14%, with NIKE Digital down 26% and NIKE stores up 2%. Wholesale Revenue: Decreased by 9%. Gross Margin: Declined 440 basis points to 40.3% due to higher discounts and supply chain costs. SG&A Expenses: Increased by 1%, driven by a 15% rise in demand creation expenses. Effective Tax Rate: Increased to 33.6% from 13.1% the previous year. Earnings Per Share (EPS): $0.14 for the quarter. Full-Year Revenue: Down 10% on a reported basis and 9% on a currency-neutral basis. Full-Year EPS: $2.16. Inventory: Flat versus the prior year and down 1% versus the prior quarter. North America Revenue: Declined 11% for Q4. EMEA Revenue: Declined 10% for Q4. Greater China Revenue: Declined 20% for Q4. APLA Revenue: Declined 3% for Q4. Tariff Impact: Estimated gross incremental cost increase of approximately $1 billion. Warning! GuruFocus has detected 5 Warning Signs with FUL. Release Date: June 26, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Nike Inc (NYSE:NKE) is implementing 'Win Now' actions to reposition its brands and business for future growth, showing early signs of improvement. The company is focusing on a sport offense strategy, organizing into sport-obsessed teams to drive innovation and create sharper brand distinction. Nike Inc (NYSE:NKE) is expanding its distribution with strategic partners, including a new partnership with Amazon, to reach a wider range of consumers. The company is seeing positive feedback from wholesale partners, with an improving order book and increased sell-through of new products. Nike Inc (NYSE:NKE) is making progress in rebalancing its product portfolio, with strong performance in running and women's basketball segments. Nike Inc (NYSE:NKE) reported a 12% decline in revenues for the fourth quarter, with significant declines in NIKE Digital and wholesale segments. Gross margins declined by 440 basis points due to higher discounts and supply chain cost deleverage. The company is facing challenges in the Greater China market, with a 20% revenue decline and ongoing efforts to clean up the marketplace. Nike Inc (NYSE:NKE) is dealing with new tariffs, which are expected to have a $1 billion cost impact, affecting gross margins in the near term. The company anticipates continued headwinds from managing down classic footwear franchises and repositioning NIKE Digital as a full-price model. Q: Could you elaborate on the accelerated actions under your sport offense realignment and the phasing of innovation into the back half of FY26? A: Elliott Hill, President and CEO, explained that Nike is organizing into sport-obsessed teams to drive a continuous flow of innovative products across all brands and categories. The focus on sport is expected to create sharper brand distinction and dimension. He highlighted running as a successful example, with products like Vomero 18 becoming a $100 million business. The product pipeline is strengthening with each season, and Nike is confident in its ability to innovate and differentiate in the marketplace. Q: Is the continued cleanup of the marketplace consistent with prior plans, or have you found something new? A: Matthew Friend, CFO, confirmed that the cleanup is consistent with prior plans. Nike remains on track to achieve a healthy and clean marketplace by the end of the first half of fiscal '26. The quality of inventory has improved, and the holiday order book being up indicates progress in cleaning the channel and partner investment in new products. Q: Are you expecting gross margin pressures to abate sequentially as the year progresses, and is there an opportunity to return to growth in the back half? A: Matthew Friend stated that margins are expected to remain under pressure in the first half of '26 due to strategic actions and tariff timing. However, these pressures are expected to moderate in the second half. The focus is on managing product and channel mix headwinds, transitory impacts from Win Now actions, and newly implemented tariffs. Q: Can you discuss the opportunity to drive full recovery in the China marketplace over time? A: Elliott Hill emphasized the long-term opportunity in China, despite current challenges. Nike is focused on cleaning up the marketplace, elevating digital, and investing in new retail concepts. The key to success is connecting locally and elevating consumer-led product concepts. While changes will take time, Nike is committed to pulling the right levers for growth. Q: Structurally, is there any reason why Nike should not be a double-digit margin business once current challenges are cleared? A: Matthew Friend expressed confidence in returning to double-digit margins, highlighting that the Win Now actions are designed to reposition Nike as a full-price brand and reignite growth. With disciplined expense management and a focus on sustainable organic revenue growth, Nike aims to achieve operating leverage and return to double-digit margins over time. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
a day ago
- Business
- Yahoo
NIKE, Inc. Reports Fiscal 2025 Fourth Quarter and Full Year Results
BEAVERTON, Ore., June 26, 2025--(BUSINESS WIRE)--NIKE, Inc. (NYSE:NKE) today reported financial results for its fiscal 2025 fourth quarter and full year ended May 31, 2025. Full year revenues were $46.3 billion, down 10 percent on a reported basis compared to the prior year and down 9 percent on a currency-neutral basis* Fourth quarter revenues were $11.1 billion, down 12 percent on a reported basis and down 11 percent on a currency-neutral basis NIKE Direct revenues for the fourth quarter were $4.4 billion, down 14 percent on a reported and currency-neutral basis Wholesale revenues for the fourth quarter were $6.4 billion, down 9 percent on a reported and currency-neutral basis Gross margin for the fourth quarter decreased 440 basis points to 40.3 percent Diluted earnings per share was $0.14 for the fourth quarter "While our financial results are in-line with our expectations, they are not where we want them to be. Moving forward, we expect our business to improve as a result of the progress we're making through our Win Now actions," said Elliott Hill, President & CEO, NIKE, Inc. "As we enter a new fiscal year, we are turning the page and the next step is aligning our teams to lead with sport through what we are calling the sport offense. This will accelerate our Win Now actions to reposition our business for future growth." The sport offense realignment will focus on driving distinction within key sports, building a complete product portfolio, creating stories to inspire and connect with consumers, and elevating and growing the entire marketplace. "The fourth quarter reflected the largest financial impact from our Win Now actions, and we expect the headwinds to moderate from here," said Matthew Friend, Executive Vice President & Chief Financial Officer, NIKE, Inc. "I am confident in our ability to navigate through this current dynamic and uncertain environment by focusing on what we can control and executing our Win Now actions." Fourth Quarter Income Statement Review Revenues for NIKE, Inc. were $11.1 billion, down 12 percent on a reported basis and down 11 percent on a currency-neutral basis. Revenues for the NIKE Brand were $10.8 billion, down 11 percent on a reported and currency-neutral basis, driven by declines across all geographies. NIKE Direct revenues were $4.4 billion, down 14 percent on a reported and currency-neutral basis, due to a 26 percent decrease in NIKE Brand Digital, partially offset by a 2 percent increase in NIKE-owned stores. Wholesale revenues for the fourth quarter were $6.4 billion, down 9 percent on a reported and currency-neutral basis. Revenues for Converse were $357 million, down 26 percent on a reported and currency-neutral basis, due to declines across all territories. Gross margin decreased 440 basis points to 40.3 percent, primarily due to higher discounts and changes in channel mix. Selling and administrative expense increased 1 percent to $4.1 billion. Demand creation expense was $1.3 billion, up 15 percent, primarily due to higher sports marketing expense and higher brand marketing expense. Operating overhead expense decreased 3 percent to $2.9 billion, primarily due to restructuring charges in the prior year, lower wage-related expenses and lower other administrative costs. The effective tax rate was 33.6 percent, compared to 13.1 percent for the same period last year, primarily due to decreased benefits from stock-based compensation and one-time items that have an outsized impact on the tax rate because of lower pre-tax income in the quarter. Net income was $0.2 billion, down 86 percent, and Diluted earnings per share was $0.14, a decrease of 86 percent. Fiscal 2025 Income Statement Review Revenues for NIKE, Inc. were $46.3 billion, down 10 percent on a reported basis and down 9 percent on a currency-neutral basis. Revenues for the NIKE Brand were $44.7 billion, down 9 percent on a reported and currency-neutral basis, driven by declines across all geographies. NIKE Direct revenues were $18.8 billion, down 13 percent on a reported basis and down 12 percent on a currency-neutral basis, due to a 20 percent decrease in NIKE Brand Digital, while NIKE-owned stores were flat. Wholesale revenues were $25.9 billion, down 7 percent on a reported basis and down 6 percent on a currency-neutral basis. Revenues for Converse were $1.7 billion, down 19 percent on a reported basis and down 18 percent on a currency-neutral basis, due to declines across all territories. Gross margin decreased 190 basis points to 42.7 percent, primarily due to higher discounts, changes in channel mix and higher inventory obsolescence reserves, partially offset by lower product costs. Selling and administrative expense decreased 3 percent to $16.1 billion. Demand creation expense was $4.7 billion, up 9 percent, primarily due to higher brand marketing expense and higher sports marketing expense. Operating overhead expense decreased 7 percent to $11.4 billion, primarily due to restructuring charges in the prior year, lower wage-related expenses and lower other administrative costs. The effective tax rate was 17.1 percent, compared to 14.9 percent for the same period last year, primarily due to changes in earnings mix, decreased benefits from stock-based compensation and non-recurring one-time benefits in the prior year, partially offset by a one-time, non-cash deferred tax benefit provided by US tax regulations related to foreign currency gains and losses. Net income was $3.2 billion, down 44 percent, and Diluted earnings per share was $2.16, a decrease of 42 percent. May 31, 2025 Balance Sheet Review Inventories for NIKE, Inc. were $7.5 billion, flat compared to the prior year. Cash and equivalents and short-term investments were $9.2 billion, down approximately $2.4 billion from last year, as cash generated from operations was more than offset by share repurchases, cash dividends, bond repayment and capital expenditures. Shareholder Returns NIKE continues to have a strong track record of consistently increasing returns to shareholders, including 23 consecutive years of increasing dividend payouts. In the fourth quarter, the Company returned approximately $0.8 billion to shareholders, including: Dividends of $591 million, up 6 percent from prior year. Share repurchases of $202 million, reflecting 3.2 million shares retired as part of the four-year, $18 billion program approved by the Board of Directors in June 2022. In fiscal 2025, the Company returned approximately $5.3 billion to shareholders, including: Dividends of $2.3 billion, up 6 percent from prior year. Share repurchases of $3.0 billion, reflecting 37.6 million shares retired as part of the four-year, $18 billion program approved by the Board of Directors in June 2022. As of May 31, 2025, a total of 122.6 million shares have been repurchased under the current program for a total of approximately $12.0 billion. Conference Call NIKE, Inc. management will host a conference call beginning at approximately 2:00 p.m. PT on June 26, 2025, to review fiscal fourth quarter and full year results. The conference call will be broadcast live via the Internet and can be accessed at For those unable to listen to the live broadcast, an archived version will be available at the same location through 9:00 p.m. PT, July 17, 2025. About NIKE, Inc. NIKE, Inc., based near Beaverton, Oregon, is the world's leading designer, marketer and distributor of authentic athletic footwear, apparel, equipment and accessories for a wide variety of sports and fitness activities. Converse, a wholly-owned NIKE, Inc. subsidiary brand, designs, markets and distributes athletic lifestyle footwear, apparel and accessories. For more information, NIKE, Inc.'s earnings releases and other financial information are available on the Internet at Individuals can also visit and follow @NIKE. Forward-Looking Statements This press release contains forward-looking statements regarding our expectations of our future results and our strategy, which involve risks and uncertainties that could cause actual results to differ materially. These risks and uncertainties are detailed from time to time in reports filed by NIKE with the U.S. Securities and Exchange Commission (SEC), including Forms 8-K, 10-Q and 10-K. * Non-GAAP financial measures. See additional information in the accompanying Divisional Revenues, Supplemental NIKE Brand Revenue and Diluted earnings per share tables. NIKE, Inc. CONSOLIDATED STATEMENTS OF INCOME (Unaudited) THREE MONTHS ENDED % TWELVE MONTHS ENDED % (In millions, except per share data) 5/31/2025 5/31/2024 Change 5/31/2025 5/31/2024 Change Revenues $ 11,097 $ 12,606 -12 % $ 46,309 $ 51,362 -10 % Cost of sales 6,628 6,972 -5 % 26,519 28,475 -7 % Gross profit 4,469 5,634 -21 % 19,790 22,887 -14 % Gross margin 40.3 % 44.7 % 42.7 % 44.6 % Demand creation expense 1,253 1,091 15 % 4,689 4,285 9 % Operating overhead expense 2,895 2,997 -3 % 11,399 12,291 -7 % Total selling and administrative expense 4,148 4,088 1 % 16,088 16,576 -3 % % of revenues 37.4 % 32.4 % 34.7 % 32.3 % Interest expense (income), net (22 ) (53 ) — (107 ) (161 ) — Other (income) expense, net 25 (127 ) — (76 ) (228 ) — Income before income taxes 318 1,726 -82 % 3,885 6,700 -42 % Income tax expense 107 226 -53 % 666 1,000 -33 % Effective tax rate 33.6 % 13.1 % 17.1 % 14.9 % NET INCOME $ 211 $ 1,500 -86 % $ 3,219 $ 5,700 -44 % Earnings per common share: Basic $ 0.14 $ 0.99 -86 % $ 2.17 $ 3.76 -42 % Diluted $ 0.14 $ 0.99 -86 % $ 2.16 $ 3.73 -42 % Weighted average common shares outstanding: Basic 1,476.7 1,508.0 1,484.9 1,517.6 Diluted 1,477.7 1,516.7 1,487.6 1,529.7 Dividends declared per common share $ 0.400 $ 0.370 $ 1.570 $ 1.450 NIKE, Inc. CONSOLIDATED BALANCE SHEETS (Unaudited) May 31, May 31, % Change (Dollars in millions) 2025 2024 ASSETS Current assets: Cash and equivalents $ 7,464 $ 9,860 -24 % Short-term investments 1,687 1,722 -2 % Accounts receivable, net 4,717 4,427 7 % Inventories 7,489 7,519 0 % Prepaid expenses and other current assets 2,005 1,854 8 % Total current assets 23,362 25,382 -8 % Property, plant and equipment, net 4,828 5,000 -3 % Operating lease right-of-use assets, net 2,712 2,718 0 % Identifiable intangible assets, net 259 259 0 % Goodwill 240 240 0 % Deferred income taxes and other assets 5,178 4,511 15 % TOTAL ASSETS $ 36,579 $ 38,110 -4 % LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Current portion of long-term debt $ — $ 1,000 -100 % Notes payable 5 6 -17 % Accounts payable 3,479 2,851 22 % Current portion of operating lease liabilities 502 477 5 % Accrued liabilities 5,911 5,725 3 % Income taxes payable 669 534 25 % Total current liabilities 10,566 10,593 0 % Long-term debt 7,961 7,903 1 % Operating lease liabilities 2,550 2,566 -1 % Deferred income taxes and other liabilities 2,289 2,618 -13 % Redeemable preferred stock — — — Shareholders' equity 13,213 14,430 -8 % TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 36,579 $ 38,110 -4 % NIKE, Inc. DIVISIONAL REVENUES (Unaudited) % Change Excluding Currency Changes1 % Change Excluding Currency Changes1 THREE MONTHS ENDED % TWELVE MONTHS ENDED % (Dollars in millions) 5/31/2025 5/31/2024 Change 5/31/2025 5/31/2024 Change North America Footwear $ 3,104 $ 3,587 -13 % -13 % $ 12,684 $ 14,537 -13 % -13 % Apparel 1,303 1,398 -7 % -7 % 5,837 5,953 -2 % -2 % Equipment 296 293 1 % 2 % 1,051 906 16 % 16 % Total 4,703 5,278 -11 % -11 % 19,572 21,396 -9 % -8 % Europe, Middle East & Africa Footwear 1,893 2,067 -8 % -9 % 7,569 8,473 -11 % -10 % Apparel 929 1,049 -11 % -12 % 3,971 4,380 -9 % -9 % Equipment 178 176 1 % 0 % 717 754 -5 % -5 % Total 3,000 3,292 -9 % -10 % 12,257 13,607 -10 % -10 % Greater China Footwear 1,074 1,357 -21 % -20 % 4,805 5,552 -13 % -13 % Apparel 372 460 -19 % -19 % 1,616 1,828 -12 % -12 % Equipment 30 46 -35 % -33 % 165 165 0 % 1 % Total 1,476 1,863 -21 % -20 % 6,586 7,545 -13 % -12 % Asia Pacific & Latin America Footwear 1,114 1,226 -9 % -5 % 4,452 4,865 -8 % -4 % Apparel 398 416 -4 % -1 % 1,541 1,614 -5 % -1 % Equipment 63 63 0 % 3 % 258 250 3 % 7 % Total 1,575 1,705 -8 % -3 % 6,251 6,729 -7 % -3 % Global Brand Divisions2 9 11 -18 % 0 % 48 45 7 % 10 % TOTAL NIKE BRAND 10,763 12,149 -11 % -11 % 44,714 49,322 -9 % -9 % Converse 357 480 -26 % -26 % 1,692 2,082 -19 % -18 % Corporate3 (23 ) (23 ) — — (97 ) (42 ) — — TOTAL NIKE, INC. REVENUES $ 11,097 $ 12,606 -12 % -11 % $ 46,309 $ 51,362 -10 % -9 % TOTAL NIKE BRAND Footwear $ 7,185 $ 8,237 -13 % -12 % $ 29,510 $ 33,427 -12 % -11 % Apparel 3,002 3,323 -10 % -9 % 12,965 13,775 -6 % -5 % Equipment 567 578 -2 % -1 % 2,191 2,075 6 % 6 % Global Brand Divisions2 9 11 -18 % 0 % 48 45 7 % 10 % TOTAL NIKE BRAND REVENUES $ 10,763 $ 12,149 -11 % -11 % $ 44,714 $ 49,322 -9 % -9 % 1 The percent change has been calculated using actual exchange rates in use during the comparative prior year period and is provided to enhance the visibility of the underlying business trends by excluding the impact of translation arising from foreign currency exchange rate fluctuations, which is considered a non-GAAP financial measure. Management uses this non-GAAP financial measure when evaluating the Company's performance, including when making financial and operating decisions. Additionally, management believes this non-GAAP financial measure provides investors with additional financial information that should be considered when assessing the Company's underlying business performance and trends. References to this measure should not be considered in isolation or as a substitute for other financial measures calculated and presented in accordance with U.S. GAAP and may not be comparable to similarly titled non-GAAP measures used by other companies. 2 Global Brand Divisions revenues include NIKE Brand licensing and other miscellaneous revenues that are not part of a geographic operating segment. 3 Corporate revenues primarily consist of foreign currency hedge gains and losses related to revenues generated by entities within the NIKE Brand geographic operating segments and Converse, but managed through the Company's central foreign exchange risk management program. NIKE, Inc. SUPPLEMENTAL NIKE BRAND REVENUE DETAILS (Unaudited) % Change Excluding Currency Changes1 TWELVE MONTHS ENDED % (Dollars in millions) 5/31/2025 5/31/2024 Change NIKE Brand Revenues by: Sales to Wholesale Customers $ 25,883 $ 27,758 -7 % -6 % Sales through NIKE Direct 18,783 21,519 -13 % -12 % Global Brand Divisions2 48 45 7 % 10 % TOTAL NIKE BRAND REVENUES $ 44,714 $ 49,322 -9 % -9 % NIKE Brand Revenues by:3 Men's $ 23,216 $ 24,785 -6 % -6 % Women's 9,719 10,366 -6 % -5 % Kids' 5,695 6,019 -5 % -5 % Jordan Brand 7,270 8,701 -16 % -16 % Others4 (1,234 ) (594 ) -108 % -106 % Global Brand Divisions2 48 45 7 % 10 % TOTAL NIKE BRAND REVENUES $ 44,714 $ 49,322 -9 % -9 % 1 The percent change has been calculated using actual exchange rates in use during the comparative prior year period and is provided to enhance the visibility of the underlying business trends by excluding the impact of translation arising from foreign currency exchange rate fluctuations, which is considered a non-GAAP financial measure. Management uses this non-GAAP financial measure when evaluating the Company's performance, including when making financial and operating decisions. Additionally, management believes this non-GAAP financial measure provides investors with additional financial information that should be considered when assessing the Company's underlying business performance and trends. References to this measure should not be considered in isolation or as a substitute for other financial measures calculated and presented in accordance with U.S. GAAP and may not be comparable to similarly titled non-GAAP measures used by other companies. 2 Global Brand Divisions revenues include NIKE Brand licensing and other miscellaneous revenues that are not part of a geographic operating segment. 3 Beginning in fiscal 2025, with the continued rollout of a new Enterprise Resource Planning Platform, we have removed the non-GAAP financial measure of wholesale equivalent revenues. There is no change to our reported revenues or gross margin. Prior year amounts have been recast to conform to fiscal 2025 presentation. 4 Others include products not allocated to Men's, Women's, Kids' and Jordan Brand, as well as certain adjustments that are not allocated to products designated by consumer. NIKE, Inc. EARNINGS BEFORE INTEREST AND TAXES1 (Unaudited) THREE MONTHS ENDED % TWELVE MONTHS ENDED % (Dollars in millions) 5/31/2025 5/31/2024 Change 5/31/2025 5/31/2024 Change North America $ 1,045 $ 1,462 -29 % $ 4,735 $ 5,822 -19 % Europe, Middle East & Africa 472 797 -41 % 2,575 3,388 -24 % Greater China 304 548 -45 % 1,602 2,309 -31 % Asia Pacific & Latin America 319 479 -33 % 1,527 1,885 -19 % Global Brand Divisions2 (1,246 ) (1,148 ) -9 % (4,699 ) (4,720 ) 0 % TOTAL NIKE BRAND1 894 2,138 -58 % 5,740 8,684 -34 % Converse 27 94 -71 % 240 474 -49 % Corporate3 (625 ) (559 ) -12 % (2,202 ) (2,619 ) 16 % TOTAL NIKE, INC. EARNINGS BEFORE INTEREST AND TAXES1 296 1,673 -82 % 3,778 6,539 -42 % EBIT margin1 2.7 % 13.3 % 8.2 % 12.7 % Interest expense (income), net (22 ) (53 ) — (107 ) (161 ) — TOTAL NIKE, INC. INCOME BEFORE INCOME TAXES $ 318 $ 1,726 -82 % $ 3,885 $ 6,700 -42 % 1 Management evaluates the performance of the Company's segments and allocates resources based on earnings before interest and taxes (commonly referred to as "EBIT"), which represents Net income before Interest expense (income), net and Income tax expense. Total NIKE Brand EBIT, Total NIKE, Inc. EBIT and EBIT margin are considered non-GAAP financial measures. Management uses these non-GAAP financial measures when evaluating the Company's performance, including when making financial and operating decisions. Additionally, management believes these non-GAAP financial measures provide investors with additional financial information that should be considered when assessing the Company's underlying business performance and trends. EBIT margin is calculated as total NIKE, Inc. EBIT divided by total NIKE, Inc. Revenues. References to EBIT and EBIT margin should not be considered in isolation or as a substitute for other financial measures calculated and presented in accordance with U.S. GAAP and may not be comparable to similarly titled non-GAAP measures used by other companies. 2 Global Brand Divisions primarily represents costs, including product creation and design expenses, that are centrally managed for the NIKE Brand, as well as costs associated with NIKE Direct global digital operations and enterprise technology. Global Brand Divisions revenues include NIKE Brand licensing and other miscellaneous revenues that are not part of a geographic operating segment. 3 Corporate consists primarily of unallocated general and administrative expenses, including expenses associated with centrally managed departments; depreciation and amortization related to the Company's corporate headquarters; unallocated insurance, benefit and compensation programs, including stock-based compensation; and certain foreign currency gains and losses, including certain hedge gains and losses. For the twelve months ended May 31, 2024, Corporate includes the restructuring charges, recognized as a result of the Company taking steps to streamline the organization. These charges primarily reflect employee severance costs. An immaterial amount of restructuring charges was recognized for the three months ended May 31, 2024. NIKE, Inc. DILUTED EARNINGS PER SHARE (Unaudited) THREE MONTHS ENDED TWELVE MONTHS ENDED 5/31/2024 5/31/2024 DILUTED EARNINGS PER SHARE (GAAP): $ 0.99 $ 3.73 Add: Restructuring charges 0.03 0.29 Tax effect of the restructuring charges1 (0.01 ) (0.07 ) DILUTED EARNINGS PER SHARE EXCLUDING RESTRUCTURING CHARGES (NON-GAAP):2 $ 1.01 $ 3.95 1 Tax effect was determined by applying the tax rate applicable to the specific item. 2 Diluted earnings per share excluding the restructuring charges is a non-GAAP financial measure. The most comparable GAAP measure is Diluted earnings per share. The Company uses Diluted earnings per share excluding the restructuring charges to facilitate the evaluation of the Company's performance. The Company believes that providing Diluted earnings per share excluding the impacts of the restructuring charges is useful to investors for comparability between periods and allows investors to evaluate the impacts of the restructuring charges separately. For the three and twelve months ended May 31, 2025, there were no material restructuring charges impacting comparability. View source version on Contacts Investor Contact:Paul Media Contact:Virginia
