NIKE, Inc. (NYSE:NKE) Q1 2020 Earnings Conference Call - Final Transcript

Sep 24, 2019 • 05:00 pm ET


NIKE, Inc. (NYSE:NKE) Q1 2020 Earnings Conference Call - Final Transcript


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Mark Parker

in all geographies, led by our international business, which grew 16%, a double-digit growth in our Women's business off the back of an incredible Summer of celebrating female athletes. In both Footwear and Apparel, with our strong lineup of innovation and style, which continues to feed the growing consumer demand for comfortable athletic product, and in digital, which grew a very strong 42% showing the Power of more personal relationships with the consumer. Mobile continues to lead the way and within mobile, app experiences are fueling the most growth, and while this trend has held true in our own channels for some time, we're beginning to leverage our digital experiences with our retail partners.

As we set out to do, we're creating a differentiated marketplace for Nike, by scaling our learnings and best-in-class experiences with our partners. The key to expanding our competitive edge continues to be our total commitment to the consumer through the Consumer Direct Offense. We're focused, we're investing in our brand in key markets, and we're accelerating in the high-growth dimensions of our business, and that's especially important in the volatile macroeconomic and geopolitical environment that we see today.

In relation to tariffs, we've been clear that we strongly believe in the Power of free and fair trade. Historically, we've effectively navigated through excessive duties, and we're confident that we'll continue to do so under the current dynamic. In China specifically, we continue to extend Nike's lead. 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.

As I said before, Nike is a brand of China, for China, and the results continue to prove it out. We've driven double-digit growth in Greater China every quarter for more than five years. This quarter, we continued that momentum with an outstanding 27% revenue growth on a currency-neutral basis. In any environment, Nike's foundation for success has always been great product. We continue to see that today, with another huge quarter for Nike innovation. We're delivering more choice, and fresh options on some of our hottest products, an expansion of both new and existing platforms, and a deeper commitment to serving a wider range of athletes.

Sportswear continues to lead all categories in both Footwear and Apparel, growing strong double-digits. One of Nike's greatest strengths is how we mix style and innovation, and the Air Max React 270 is a perfect example. We've created a runway hit by blending Air Max and React with multiple bold colorways. In fact, the 270 Air Max React led to the largest gains in Footwear revenue for the quarter.

Another strong addition to our lineup this quarter is the Air Max 200. The layered upper with a new visible air soul unit continues to build on the energy we're driving in running silhouettes. We're also reimagining and clearly segmenting our top sportswear franchises like the Air Force 1 and Tech Fleece. By