NIKE, Inc. (NYSE:NKE) Q3 2019 Earnings Conference Call - Final Transcript

Mar 21, 2019 • 05:00 pm ET

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NIKE, Inc. (NYSE:NKE) Q3 2019 Earnings Conference Call - Final Transcript

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Q & A
Operator
Operator

(Operator Instructions) Your first question is from Omar Saad with Evercore ISI. Your line is open.

Analyst
Omar Saad

Thanks for taking my question. Another great quarter, congratulations.

Executive
Mark Parker

Thanks, Omar.

Analyst
Omar Saad

I wanted to ask a question on the women's business actually. We've noticed a greater focus in the marketplace, marketing, messaging on the product side, there seems to be a lot of innovation, obviously you talked about it on the call as well. Maybe give us an update on where you stand on that opportunity, obviously it's a key focus of the company and an important part of the long-term plan.

Is it growing as a mix of the business or is the men's business just too strong for women's at this point, it's still really become a more material mix driver? Thanks. And I have one follow-up. Thanks.

Executive
Mark Parker

Thanks , Omar. Yeah, actually the women's business is over indexing our men's growth and we see, as we said earlier, tremendous opportunity moving forward. We are under indexed in terms of our percentage of business in the women's area as you know. So the upside there, particularly with the consumer, the market being bigger than the men's, is tremendous upside. We had a great quarter in Q3. The good news, it's driven by balanced growth I think across footwear and apparel. We had particularly great momentum in Greater China and APLA , so this is obviously a global opportunity.

We see women embracing the sneaker culture more and more every day. So we're scaling up popular models and creating new models for women specifically and the response like with the Air Max Dia, for example, one of the newer models has been tremendous. Also great opportunity in apparel. We've had real strong response to that NIKE yoga collection and the tight business, driven by the 1 Tight, some innovation there as well. And as I said, the bra business is actually a great opportunity for us and we've expanded the bra collection considerably, particularly in the plus-size area of the business and we are seeing strong consumer demand there.

So it's really an opportunity across all dimensions of our business. Jordan is another one. Women's in Jordan grew a strong double-digit number this this past quarter and the focus for us is a huge priority is editing and shifting the resources we have internally to serve women more completely. We are definitely looking at how we elevate our female athletes and influencers more completely, providing membership and access to sport, being very thoughtful in terms of design and our innovation agenda specifically for women. So again, simple that conclusion there is under-indexed opportunity for us at this point, huge opportunity for us going forward as we shift focus.

Executive
Andrew Campion

And Omar, an area in which we will deliberately shift investment from a product creation through the retail experience is to accelerate against what we see as a tremendous growth opportunity.

Analyst
Omar Saad

Understood. That's helpful. And then while I have you maybe bigger picture on the digital