Nike Inc (NYSE:NKE) Q3 2020 Earnings Conference Call - Final Transcript

Mar 24, 2020 • 05:00 pm ET


Nike Inc (NYSE:NKE) Q3 2020 Earnings Conference Call - Final Transcript


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Good afternoon everyone. Welcome to NIKE Inc.'s Fiscal 2020 Third Quarter Conference Call. For those who want to reference today's press release, you'll find it at

Leading today's call is Matt Friend, CFO, NIKE Operating Segments and Vice President, Investor Relations. Before I turn the call over to Mr. Friend let me remind you that participants on this call will make forward-looking statements based on current expectations and those statements are subject to certain risks and uncertainties that could cause actual results to differ materially. These risks and uncertainties are detailed in the reports filed with the SEC, including the Annual Report filed on Form 10- K. Some forward-looking statements may concern expectations of future revenue growth or gross margin. In addition, participants may discuss non-GAAP financial measures including references to constant dollar revenue. References to constant dollar revenue are intended to provide context as to the performance of the business eliminating foreign exchange fluctuations. Participants may also make references to other non-public financial and statistical information and to non-GAAP financial measures. To the extent non-public financial and statistical information is discussed presentations of comparable GAAP measures and quantitative reconciliations will be made available and NIKE's website

Now I would like to turn the call over to Matt Friend, CFO Operating Segments and Vice President, Investor Relations.

Matt Friend

Thank you, operator. Hello, everyone, and thank you for joining us today to discuss NIKE Inc.'s fiscal 2020 third 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 one hour ago or at our website

Joining us on today's call will be NIKE Inc. President and CEO, John Donahoe and our Chief Financial Officer, Andy Campion. We are sitting together in a conference room six feet apart practicing social distancing. Following Andy and John's 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 re-queue and we will do our best to come back to you. Thanks for your cooperation on this.

I will now turn the call over to NIKE Inc., President and CEO, John Donahoe.

John J. Donahoe

Thanks, Matt and hello to everyone on the call. Over the last quarter NIKE delivered 7% currency neutral revenue growth despite the material impact from COVID-19 in China. This performance reflects the strong business momentum we had in Q3 across all of our geographies and categories. But let's take a step back. We're living in an unprecedented moment and like never before each day requires a close inspection of a very dynamic external environment and a clear determination of how we will respond. So let me tell you what we've seen over the past two months. When COVID-19 began to aggressively