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

Mar 24, 2020 • 05:00 pm ET

Previous

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

Share
Close

Loading Event

Loading Transcript

Q & A
Operator
Operator

[Operator Instructions] Our first question is from Bob Drbul with Guggenheim Securities. Bob, your line is open.

Analyst
Robert Drbul

Hi. Good afternoon, guys.

Executive
John J. Donahoe

Hey, Bob.

Executive
Andy Campion

Hey, Bob.

Analyst
Robert Drbul

I just -- on the questioning for the, I guess just on the inventory and the innovation pipeline, when you think about the halting of organizational -- the sports and the Olympics and the basketball, can you just talk us through how you're thinking about the pipeline, given the postponement of the Olympics? You showed [Phonetic] some really great product last month. I'd just love to hear how you're approaching that piece of it.

And then the second piece of it is just can you elaborate a little more on how flexible your spending is, your demand creation that you sort of had planned for the next, let's call it, six months? Thanks.

Executive
John J. Donahoe

Sure, Bob. It's John. Why don't I take the first part of the question, maybe Andy you take the second piece. So obviously the world of organized sports, professional sports leagues and now the Olympics have put things on hold and they are doing, I think, what's appropriate by prioritizing the health and safety of their athletes and fans. And we're very supportive of that and we look forward to when organized sport will be back and running and when they are, we will be there. But I think it's important to separate those sporting events and our innovation pipeline, because we will continue to move forward in our innovation pipeline. And as I said earlier, we're very excited about the products in that pipeline and the products we're introducing, in fact, more excited than perhaps any time before.

And while we announced some of these products around the Olympics, if Olympics get deferred for a year, we can still launch them on our timing. So two specific examples, as you know that the NEXT% performance running line will allow runners of all abilities to have the same technology and measurable benefits of the Alphafly NEXT% that the world's leading marathoners have. And we could launch that when the time is right unrelated to the Olympics. Similarly some of the sustainability products we announced at the forum the VaporMax 2020 which utilizes 75% recycled manufacturing waste or the Space Hippie line, which is an innovative way to have low carbon footprint footwear, we can launch when the time is right, when we get to the recovering normalization periods. And so consumer demand for those things is strong and will continue to be strong. And so we simply are going to move ahead with our product pipeline at the right moments in the right ways.

I'll just make one small final example before turning it over to Andy. In China we got creative and we took a couple of launches that were scheduled in February and made them digital only launches. So the Air Jordan Retro High OG and the Air Jordan 5 Retro, we made digital only launches in a world where stores