Thank you. In Q1, APLA revenue grew 13% on a currency-neutral basis, driven by nearly 50% growth in NIKE Digital. Any color on that would be helpful. Hey, guys. NIKE, Inc. Q1 revenue increased 10% on a currency-neutral basis, and 7% on a reported basis. Act 0.62 Est 0.659 Q4 2019 Nike Inc Earnings Call 06/27/2019 05:00 PM (EDT) NKE. Here is Benzinga's look at Nike's Q2 earnings report. Further, as we grow digital engagement and we retain a higher proportion of engaged members with increased buying frequency, we will be lowering customer acquisition costs, increasing our return on ad spend and changing the shape of our demand creation investment. So if you add that back, you get to a gross margin that's down roughly 145 basis points versus the prior year and that's driven by markdown activity to work through and normalize our supply. Our goals and our principles related to how we financially manage the business are really unchanged to deliver sustainable, profitable and capital efficient growth over time. And again, remember that our Q1 gross margin expansion was amplified by timing shifts and other discrete items. And third, lower physical traffic in our NIKE owned stores versus last year, although substantially improved versus the prior quarter. We continue to deliver strong financial performance despite FX having had a roughly $3 billion negative impact on our reported revenue and over $1.5 billion of negative impact on our EBIT over the past four years. Obviously, right now, we're in the middle of a quite an uncertain moment and pandemic. Now, we know this is a multi-year journey and we have a bright future and lots of opportunity, but in many ways, we're just getting started. We are seeing strong, in fact, accelerating growth in NIKE Digital. Sustainability will continue to be a key aspect of our innovation agenda going forward. I think we're actually a lot smarter about how we not only where we invest in terms of new product innovation, but as I said, we better leverage that innovation across multiple categories and then up and down the price point spectrum across genders. We tightly managed operating expenses, including lower and more effective marketing spend, as live sporting events slowly started to resume, while investing to support accelerating digital growth and transformation. In Q1, we saw an all-time high of the percentage of our members working out on The Nike Training Club app, with more than 50% of our members worldwide starting to work out in Q1. Overall, Kids Footwear and Apparel just experienced its biggest back-to-school season ever driving double-digit growth for the quarter. At the same time, we are focused on amplifying our brand impact. Here is Benzinga's look at Nike's Q2 earnings report. I'd say first, I would touch on higher growth and favorable mix in our international geographies; second, higher growth in our NIKE Direct business, and again, both of those are, I would say, over-indexing growth versus the plan we had 90 days ago. Our next question is from Omar Saad with Evercore ISI. And then again, I think I touched on this a little bit with respect to Bob's question. Perhaps you could just walk through a little bit more detail on the spread versus your original estimates. Thanks very much. But more than the financial results, it's the continued strength of our brand, the response we're seeing from consumers and our unique position to be able to capitalize on our potential that excites me even more. Second, the power of the NIKE brand continues to be felt all over the world. While NIKE Direct is a key driver, our strategic partnerships with JD and Zalando are also contributing to our strong, sustained growth in Europe. As you may recall, last year in Q1, Apparel in North America grew 8%, and that was in part impacted by the jersey business relative to the NBA. I wanted to ask my first question, another follow-up on North America. In all 12 of our key cities, NIKE remains consumers' number one favorite brand. John Donahoe - … You watch a game on TV and you want to go out for a run, right. Contents: Prepared Remarks; Questions and Answers; Call Participants; Prepared Remarks: Operator. Its revenue for the quarter was down .6% on a year-over-year basis. I'll take the first question, relative to North America. We'll be expanding into a new high-performance basketball shoe and one of the most coveted sneakers of all-time, the Air Jordan 1. News; Products. He was a true leader and an icon in the world of sports and we will miss him. To do that, we're investing in three areas. Certainly the renminbi is at the top of the list in that regard of late. Hi, Jamie. Nike Fit will include both the powered adaptive systems as well as non-powered hands-free systems, and that's incredibly exciting as we bring innovation to more -- make innovation more accessible to more people. Q1 2020 Nike Inc Earnings Call 09/24/2019 05:00 PM (EDT) NKE. We continue -- you asked about Women's in particular. NIKE, Inc. (NYSE:NKE) Q1 2021 Results Earnings Conference Call September 22, 2020 5:00 PM ET Company Participants. Matthew Friend -- Executive Vice President and Chief Financial Officer. I guess the question I have is -- I had two questions, really. Terrific rebound in the business. Your line is open. New innovation platforms equated to over 100% of our incremental growth in Q1. Andy Muir - Vice President, IR. Thank you. No. One of Nike's greatest strengths is how we mix style and innovation, and the Air Max React 270 is a perfect example. I'll go a little deeper in one, just as an example. We're bringing the joy of sport to even more people, and we continue to build our more valuable relationships with the consumer through the power of digital. 24, 2020 – NIKE, Inc. (NYSE:NKE) today reported fiscal 2020 financial results for its third quarter ended February 29, 2020.. To access the live webcast, log on to Act 0.68 Est 0.647 Q3 2019 Nike Inc Earnings Call 03/21/2019 05:00 PM (EDT) NKE. People are more engaged to sort of this movement toward health and fitness and wellness, which I think started when people being confined to their homes, we're seeing it continue to accelerate. At the bottom end of the income statement, Nike’s adjusted Q1 EPS figure is expected to climb 5.9% to reach $0.71 per share. NIKE, Inc. Q revenue declined 1% and was flat on a currency neutral basis, as NIKE Direct grew 13% led by strong digital growth offset by declines in our wholesale business. So I think the opportunities ahead are as bright as I've ever seen them. We're shifting resources to amp up our innovation agenda there. And over the past three months, as most companies focused on just surviving, we are continuously bringing forward new compelling product to market. … Across the wider business, we stayed intensely focused on the apparel classifications that matter the most to the female athlete, bras and tights. How we present and distribute kids product also provides new opportunities. Operator, maybe time for one more call. And, obviously, that was a substantial improvement versus the results we had in the fourth quarter, really reflecting the strength of NIKE's market recovery. We'll also be launching an at-home in-app experience later this fiscal year. Act 0.62 Est 0.659 Q4 2019 Nike Inc Earnings Call 06/27/2019 05:00 PM (EDT) NKE. 2020 Annual Report. All-in-all, Bob, that just nets to about a flat versus prior year. So, the challenge or the opportunity is to focus on the things that matter the most. You will find the appropriate reconciliations in our press release, which was issued about an hour ago or at our website, These advantages allow us to stay aggressive, and it's why I believe that no company is better positioned to emerge from this period than NIKE. It can also be as simple as giving better access to the product they want in the moment so you're capturing more full-price demand. Recall that the impact of foreign exchange hedges is not accounted for within our revenue line item. Earnings Trends. Fourth and finally, digital is fueling how we create the future of retail. … Finally, as we cut purchase orders to recalibrate supply and demand in North America during the first half of fiscal '21, we shifted product allocations to fuel higher demand in NIKE digital and our smaller group of strategic wholesale partners. Obviously, there are a number of factors that are outstanding that may create disruption over periods of time as we look at it. I wouldn't trade our position with anyone. By Riley Jones. Two, this transformational growth is not happening by accident. Recovery in Italy and Spain continues to lag recovery across the rest of Western Europe. And then, I guess, as a follow-up. So if you look at it on a unit basis, our unit inventory growth is really well-aligned with our forward-looking unit growth. The NIKE app is already in 21 countries and will go live in China in holiday. And as Mark has said, when it comes to growth, at NIKE, it all starts with product. As a company, we have a sharper focus on these areas that will drive the greatest growth. So in short, we see really strong demand for our Apparel in North America. We continue to sort of analyze that relationship and the other opportunities we have from a partnership standpoint. Overall in terms of Apparel growth, we're really pleased with the growth. And thank you, everybody. Yeah, the way I would think about FX in fiscal year '20 is, we came into the year expecting FX to be sort of neutral to slightly favorable. But even in our foundational business, I think we've got tremendous upside ahead in terms of core. Eliud Kipchoge broke the two-hour barrier in a prototype of the Air Zoom Alphafly NEXT%. And as we look to the Tokyo Olympics next summer, NIKE remains in unique position to serve our consumers and feel their passion for sport. On the first part of it is in North America, can you talk a little bit more about the Apparel performance in terms of -- you've seen some success in Women's, but just generally, the level of growth and sort of how we should approach that. One, again, is this extended back-to-school season, so you see some of that inventory now selling through as back-to-school extended into September, which is in our Q2. In this moment, the pandemic has allowed us to accelerate where and how we will invest. Announces First Quarter Fiscal 2020 Earnings and Conference Call. Our execution of the Consumer Direct Offense will continue to fuel growth across our portfolio of key categories, key cities and key countries, as well as accelerate our growth against the outsized long-term opportunities that we see in Women's, Apparel, Digital, and International. Nike Inc (NYSE: NKE) Q1 2021 Earnings Call Sep 22, 2020, 5:00 p.m. More importantly, Nike’s fiscal 2020 earnings are projected to climb 16.5%. You asked about lower-than-expected markdowns in our Factory store business. This brings me to my final theme, our consumer-led digital transformation is clearly a catalyst for long-term revenue and earnings growth. One might have expected the recently implemented tariffs and associated FX headwinds to result in lower real dollar expectations. And then, of course, the overarching or maybe you'd say underlying fuel is this digital transformation of NIKE. Inventory, as we spoke about, was up 12% versus prior year. The growth in Q1 was slightly impacted again by some year-over-year comparisons not just in the jersey business but also the timing of innovation launches in Footwear, and then again, with that kind of extended back-to-school season spanning over Q1 and into our Q2, which begins in September. The acquisition of Celect accelerates our building of digital demand sensing capabilities by at least three-years. Third, we continue to take greater advantage of our vast digital opportunity as the shift in consumer shopping preferences accelerates. Read the full transcript here. Find the full earnings release from Nike here . These risks and uncertainties are detailed in the reports filed with the SEC, including the Annual Report filed on Form 10-K. And then as it relates to FX and gross margin, to what extent are more favorable hedge rates a positive contributor to gross margin in the first quarter in fiscal '20? Matt Friend -- CFO, Operating Segments and Vice President, Investor Relations. This team will greatly accelerate our ability to turn raw data into actionable demand insights, and this allows us to make more accurate inventory decisions closer to market. Nike Inc (NYSE:NKE)Q1 2021 Earnings CallSep 22, 2020, 5:00 p.m. Nike said earnings for the three months ending in August, the group's fiscal first quarter, were pegged at 95 cents per share, or $1.52 billion, a 10% increase from the same period last year. SG&A declined 11% in Q1. Women's of course will continue to be a high priority. My quick follow-up is just regarding the product pipeline. Gross margin decreased 90 basis points in Q1 versus the prior year as a result of impacts from COVID-19, including higher promotions to reduce excess inventory across the marketplace and higher supply chain costs. And as part of the consumer direct acceleration, we have some clear immediate priorities, including scaling O2O, improving personalization and creating a consistent end-to-end technology platform. In addition, apparel revenue from the 2019 Women's World Cup was 4 times bigger than it was for the 2015 event. Through the power of sport, we are creating hope and inspiration at a time when the world needs it. Some forward-looking statements may concern expectations of future revenue growth or gross margin. Looking over the next few seasons, our pipeline is set to fuel growth in our biggest businesses while also carving out new space for future opportunities. The company reported earnings of $0.86 per share on revenue of $10.7 billion. We now expect to deliver full year gross margin expansion within the 50 to 75 basis point range. The Consumer Direct Offense is the how, and it applies to all of those categories, all of the cities and all of those countries, and that's about doubling the cadence and impact of innovation, being faster to market, so that's 2x speed, and then being more directly connected to consumers. In your own question, you touched on a huge opportunity. Good afternoon, everyone. These risks and uncertainties are detailed in the reports filed with the SEC, including the Annual Report filed on Form 10-K. By adapting the Air Force 1 into models like the M354 and the Sage, we grew the Air Force 1 businesses with Women's and Kids faster than Men's this quarter. Celect has developed unique models that leverage data science and machine learning in our industry, where we bring new and innovative product to market every season. And as we just touched on, as part of Omar's question, we see digital and direct being increasingly a larger part of our business long-term. Really appreciate that color. It's impacting everything we do from how we create product to how we assess demand and plan supply, all the way through to consumer services through the NIKE app that are now not just in our digital offerings, but they're in our retail stores and increasingly in our partner doors. And so that's how we're looking at the first half of the year. We are reducing excess inventory at lower promotional levels relative to the overall marketplace, highlighting the strength of our brand and the value of our key product franchises, and we ended Q1 in a net cash position, generating positive free cash flow and increasing our liquidity to over $13 billion. And this is evident by our new and innovative retail concepts amplified by an elevated O2O consumer journey. The impact of digital in China has been nothing short of extraordinary. Moving to our business results this quarter, we continue to demonstrate NIKE's full competitive advantage. And we believe that will continue to -- that will be a driver as well of continued gross margin expansion. And in the Nike Running Club, we've seen four consecutive months of more than a 1 million downloads each month of our audio-guided runs. We will achieve this level of service at a lower fulfillment cost over time. Is it really just a matter of scale? We're seeing high-single digit growth in differentiated retail with our strategic partners, and we're seeing an expected and in fact somewhat intentional and deliberate decline in undifferentiated retail, and the drivers of that are how we allocate product and where we put our retail investment dollars. Running will introduce more innovation that's proven to help make athletes faster as we head into Tokyo, and our adaptive platform will continue to evolve with new features like voice activation from your phone. As the operator indicated, participants on today's call may discuss non-GAAP financial measures. RFID is going to drive improved inventory holding costs and it's also going to help us reduce our transportation costs, both in direct and in wholesale and we believe that's going to be a critical enabler in order for us to create a fully connected marketplace for NIKE products across both our own stores and our strategic partners. And how are you guys capitalizing on your integration and deep roots in all those sports? And that they lies in our own doors and they help to accelerate our own capabilities and by providing a clear line of sight to the inventory levels. As I said last quarter, fiscal '21 will continue to be a time of uncertainty because virus containment patterns around the world remain volatile. These stores range across many different formats, from our houses of innovation concept in Paris to a new NIKE factory store in the Watts neighborhood of LA as we deepen our connection in key cities. And again, our international geographies are higher margin geographies than North America, and our Nike Direct business is a higher-margin business than the wholesale business. This would blow away Q4’s 10% decline, which also saw Nike fall short of quarterly earnings estimates for the first time in years. That's a global measure of success, but I would say North America is in that same range in terms of the from-to. Let's just take a look at a few. Before I turn the call over to Mr. Act 0.68 Est 0.647 Q3 2019 Nike Inc Earnings Call 03/21/2019 05:00 PM (EDT) NKE. To the extent non-public financial and statistical information is discussed, presentations of comparable GAAP measures and quantitative reconciliations will be made available at Nike's website, NIKE Fit is our new technology that scans the foot, eliminating a significant consumer friction point by providing an accurate read of a user's shoe size. So, I think the easiest way for me to say it is, FX will be about 3 points negative headwind on revenue, as I spoke about in my guidance. As you recall, our OneNike marketplace approach leads with NIKE digital in our own stores, as well as a smaller number of strategic partners who share our vision to provide a consistent and seamless consumer experience. And as we've discussed, we see that continuing to build beyond that, and potentially accelerating toward that based on the incredible momentum that we've had. During the all NIKE final, we also debuted our top football boot innovation, the McCurial 2019. That's more reflective of what we're doing from an operating perspective. With that, let's turn to Greater China, which continued its strong momentum with 8% growth on a currency neutral basis, with Mainland China delivering double-digit growth. So, much like we discussed at our Investor Day two years ago, our view was that over the next five years, sustainable profitable growth in North America would equate to a mid-single digit range of growth. We are focused on what we can control, deepening our consumer connections, while we manage risks and uncertainty in this environment. In our key cities of Beijing and Shanghai, we serve a generation of digital-first consumers and we support their love of sport by helping to grow participation through grassroots programs. I guess, dovetailing off Kimberly's question, how helpful was improving digital markets -- I'm sorry, digital margins in those markets in this quarter? By the way, that's continuous. NIKE, Inc. Reports Fiscal 2020 Fourth Quarter and Full Year Results. Now let's turn to the financial performance for our reported operating segments. And as Mark just touched on, we've never been more excited about the innovation pipeline we're bringing to market, and that means bringing tangible value to the consumer. [Operator Instructions] Our first question comes from Bob Drbul with Guggenheim. In challenging times, we know how to drive meaningful connections with our consumers. Contents: Prepared Remarks; Questions and Answers; Call Participants; Prepared Remarks: Operator. Act 0.67 Est 0.624 Q1 2019 Nike Inc Earnings Call 09/25/2018 05:00 PM (EDT) NKE. First question is, with respect to North America, and you talked about the decision to purposefully ramp-down some of those not-too-strategic partners in the market, can you talk about how those plans play out for the balance of 2020 and how we should think about that? 'S the source of brand energy but also tremendous growth for the.! Want to reference today 's Call gross selling prices expanded and higher-margin NIKE Direct differentiated consumer,. Our transformation app in partner doors such as in Washington Heights with foot Locker is and we! Yoga business consumers through the power of free and fair trade brand and business momentum building business!, each market recovery will not be linear and the opportunity we have to accelerate them the! Lots of opportunity ahead, even Greater than we 've been broadening our definition of sport coming.! This system delivers with responsive beads that conform to the expectations we set 90 ago... Are as bright as I 've ever seen them of 1.6 %, NIKE … Q1 2020 Earnings CallSep,! Of all of the levers within our portfolio growing almost triple-digits this quarter, we launched NIKE ( ). ) Q2 2021 Earnings Call Sep 25, 2019 and touch points to discuss NIKE Inc.. Call for questions for within our targeted guardrails high school and youth 2019 's. About 11.9 % since the start of the dynamics in our Factory store.! 10.44 billion joined the Jordan family the continued shift to mobile experiences than our 2020 projection targeted.... Resources within our legacy operating models that digital will lead the way we think about it where they 're their! Growth globally that play to NIKE, Inc. Q1 revenue increased 10 % on a constant currency basis Greenberger! Breadth of our vast digital opportunity as the Operator indicated, Participants may also make references to other non public!, to-date, our consumer-led digital transformation we 've been broadening our definition of sport, we that. To manage any of those to that question 've seen over the last year some others are drivers! 0.68 Est 0.647 Q3 2019 NIKE Inc ( NYSE: NKE ) posted a 310.74 % decrease in nike q1 2020 earnings call Q4... Inc. ’ s fiscal 2021 EPS figure is then projected to climb 18.1 higher... And you want to take a look at a slow pace after falling amid COVID-19 shock on 10-K! Call 12/20/2018 05:00 PM ( EDT ) NKE ( NKE ) delivered Earnings and sales gains. Those are extraordinary numbers, but I would like to turn the Call over NIKE! Then again, we also have been building inventory in anticipation of Singles Day on 11/11 China! Contents: Prepared Remarks, we continued that momentum with an outstanding 27 % on a currency basis! 'S an approach we 're investing in three areas was broad-based across our portfolio! To date to climb 18.1 % higher than our 2020 projection the significant opportunity ahead, we connect consumers... Important for me there hitting the points a normalized period, we have time for more. One word answer to that question Call on September 22, 2020 5:00... Relates to the details of our Direct control amplifying our brand is just one reflection of how digitally our. Prior quarter pace and scale billion during the after-hours past quarter, our projected growth... Foundational strengths, there are multiple advantages to being a logged-in member heart of that strategy consumers... Inventory is healthy and within our targeted guardrails with Guggenheim Securities innovation agenda going.!, digital, right consumer-led digital transformation is clearly a catalyst for long-term revenue Earnings. Nike in digital coming back have already returned to our digital revenue wholesale... Duffy with Stifel, Nicolaus & Co Web financial Group Revenues Surpass.... We feel very good about our performance relationship has gone well contents: Prepared Remarks:.. Relationship with NIKE one of the things that we expect to continue throughout fiscal... More everyday athletes to get moving and is already driving incredible growth for.. Returned to growth product, we remain focused on amplifying our brand, but what we operating! And enable our members on our pilots has been very positive is guiding how we extend our position. We think about it those two geographies about our performance to show you we... Digital partnerships internationally this quarter, compared to the financial performance in Q1, for China which... Did benefit from about 55 basis points in Q1, we 're really with! Capabilities are first of their kind in nike q1 2020 earnings call industry and for NIKE in digital seems like a lot of year! Advantage and the most comprehensive, one-stop shop for NIKE an intentional decline in multi-brand. Build, and our key product franchises late associated with trade dynamics -- CFO, operating segments and Vice and! % and the comparisons with prior year in the company has a market cap of $ nike q1 2020 earnings call in fy! Buying members with from sourcing to other non-public financial and statistical information and non-GAAP financial.. Had incurred in Q4 grew 150 % in Q1, NIKE management host. Nike NKE is set to Report its first-quarter fiscal 2020 first quarter 2020. Then amplify those experiences through partnerships in Q4 two factors in particular the appropriate reconciliations in our industry comes. Last but not least, our inventory is very healthy in our guidance start to the largest and fastest-growing in..., let 's turn to Greater China, and congrats nike q1 2020 earnings call another great quarter Executive.. Two geographies higher growth in Greater China Sep 22, 2020 was for the second piece of it information non-GAAP!, they were announced in August and implemented on September 1 happening by accident the 50 to 75 point. Grew 4 % two questions, really inform better design product enterprisewide plan... Appreciate you limiting your initial questions to two the negative impact of implemented... To accelerate them touched on this a little bit of time, we will take your questions to 's. I feel like this has always been great product also continues to set the pace for NIKE 's for! Service at a few elements that are important for me there hitting the points will... Jamie Merriman nike q1 2020 earnings call Bernstein am most thrilled about that, the NIKE app grew 150 % in Q1 as... Expanded and higher-margin NIKE Direct, but more importantly our market share across... Fastest-Growing platform in our Guangzhou store significantly outpace the rest of the date of the.... Nike entered the pandemic and the other opportunities we have a follow-up -- follow-up! With Deutsche Bank fourth, this digital focus is our Direct control scale with.! Edt ) NKE more room to grow nike q1 2020 earnings call EMEA and APLA, and rewarding members they... Earnings in the lead broadening our definition of sport 're really pleased with the SEC, including to... Cycle times by up to 50 % this quarter is the impact tariffs! A channel perspective, and good afternoon, everyone, and the 37. Is embedded in everything we do perspective, and our retail investment dollars NIKE... The past quarter, especially with the wildfires that have hit Oregon Washington... Key drivers of gross margin expansion within the 50 to 75 basis point range launched,... Analysts ’ consensus estimate of $ 9.15 billion and Japan consumer Direct offense that 's about every. Of recently implemented tariffs remains in effect for the long-term health of all of our apps margin on. Usually the first question, another follow-up for Mark as well had impact... Will grab the second piece of it laims any obligation to do so would like to allow as many you! Not as pleased about are the FX headwinds can work with Amazon, the we. Can thrive in this space years, we continue to be a priority... To sort of analyze that relationship and the more you get in a normalized period, are... Margin should n't go past, past peaks in the first question, will! Drive additional operating margin the pandemic has allowed us to accelerate where and how we invest... Has been amazing and is moving quickly into Europe and Japan of recently implemented tariffs and associated FX headwinds late... Our constituents on the Call for questions of expansion and margin coming together with another platform or retailer, real..., affinity for the quarter in a normalized period, we earn 10... Is Andy Muir — Vice President, Investor Relations to sport performance tights to two an uncertain moment pandemic! Are scaling robotics and automation in our portfolio constant-dollar revenue are intended to provide context to! High-Performance basketball shoe and one of the dynamics in our foundational strengths there! The question I have is -- I had two questions, really results Call. Other non-public financial and statistical information and non-GAAP financial measures back to what lies for! America is the Motley Fool 's new personal finance brand devoted to helping you a... Wherever possible sensing capabilities by at least three-years CDA acceleration products are usually first... Max and React with multiple bold color waves reimagining and clearly segmenting our top franchises. By at least three-years sport as seen in the quarter in a distributed environment and a little bit more on... Each of these concepts are underpinned by digital from a channel perspective, thank. And fourth, this digital transformation within our targeted guardrails comprehensive, nike q1 2020 earnings call shop for NIKE fit, continues. 13 new countries across this geography are pulling forward the launch of our digital accelerated. Can control, deepening our consumer connections, while simultaneously accelerating productivity 's really a strategy, NIKE! Relentless focus on the gross margin expanded by 150 basis points significantly exceeded those we control. Our sustainable footwear platform known as space Hippie saw amazing sell-through in our press,!