NIKE, Inc. (NYSE:NKE) Q1 2019 Earnings Conference Call - Final Transcript

Sep 25, 2018 • 05:00 pm ET


NIKE, Inc. (NYSE:NKE) Q1 2019 Earnings Conference Call - Final Transcript


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Good afternoon, everyone. Welcome to NIKE, Inc.'s Fiscal 2019 First Quarter Conference Call. For those who want to reference today's press release, you'll find it at Leading today's call is Nitesh Sharan, VP, IR and Treasurer.

(Forward-Looking Cautionary Statements)

Now, I would like to turn the call over to Nitesh Sharan, VP, IR and Treasurer.

Nitesh Sharan

Thank you, operator. Hello, everyone, and thank you for joining us today to discuss NIKE, Inc.'s fiscal 2019 first quarter results. As the operator indicated, participants on today's call may discuss non-GAAP financial measures. You will find the appropriate reconciliations in our press release, which was issued about an hour ago, or at our website,

Joining us on today's call will be NIKE, Inc.'s Chairman, President and CEO, Mark Parker; and our CFO, Andy Campion. Following their prepared remarks, we will take your questions. We would like to allow as many of you to ask questions as possible in our allotted time. So, we would appreciate you limiting your initial questions to two. In the event, you have additional questions that are not covered by others, please feel free to requeue and we will do our best to come back to you. Thanks for your cooperation on this.

I'll now turn the call over to NIKE, Inc. Chairman, President and CEO, Mark Parker.

Mark Parker

Thanks, Nitesh, and hello and good afternoon, everyone. Last quarter, we described the growing momentum in our business, and in Q1 that momentum continued at a strong pace. We're capitalizing on the opportunities we see in the near term and we're diving deeper into the areas that will widen NIKE's advantages over the long term. Through the Consumer Direct Offense, we're taking a winning formula and executing it across our complete portfolio and it's leading to the balanced growth that you see today.

For the quarter, NIKE, Inc. revenues grew 10% on a reported basis. Specific highlights include double-digit growth in our international geographies and 6% growth in North America. NIKE Digital is leading the way for differentiated retail, up 36% for the quarter. And we saw acceleration in both our sportswear and performance businesses.

While this quarter's success was broad-based and we're pleased with our momentum, we know we have even more opportunities ahead. As we've described before, a key focus that will create separation for NIKE over the long term is our digital transformation. Ultimately, it's about becoming more personal at scale. And put simply, it's how digital is accelerating each of our Triple Double pillars. And that's how we create through 2X Innovation, how we connect through 2X Direct and how we serve through 2X Speed.

So, let's look at the quarter through each of these lenses. The success we're seeing today starts with great products. It's ultimately where the consumer cast their vote. Our innovation platforms are building a foundation for growth over many years. As the taste of our consumers shifts faster, strong platforms allow us to continually bring fresh products to market while extending our