Summary of Highlights from Nike's Q1 Earnings Call
Below are some highlights from Nike's (NYSE: NKE) Q1 Earnings Conference Call:
- President and CEO, Mark Parker reported great Q1 results due to the company's growth from “our ability to innovate, the power of the NIKE, Inc. portfolio and our ability to continue to make meaningful connections with consumers.”
- New products such as Flyknit, Hypervenom football boot, Dri-FIT knit, and NIKE Tech Pack are a small sample of Nike's new and successful product launches.
- Nike continues to build relationship with Women through NIKE Training Club. Trevor Edwards, NIKE brand President noted, “To date, we have 10 million downloads, and 600,000 workouts every week.”
- Nike continues to diversify the Converse portfolio and the company sees long- term growth potential.
- Nike remains the leading sport brand in China. All- Star NBA lineup including LeBron, Kobe, Kevin Durant, Carmelo Anthony, Chris Paul, Blake Griffin, and Russell Westbrook went to China to help build brand awareness and relations.
- In Canada, Nike had supply chains challenges which the company noted as a small term issue.
- Donald Blair mentioned a favorable product mix and tremendous growth in North America this quarter.
- There has been an increase in consumer relations and revenue in Russia.
- Basketball and running leads revenue growth.
- In emerging markets, weaker currencies significantly reduced Q1 revenue growth to 1% and compressed gross margin.
- Consumer relations and building the brand remains necessary to growth.
- E-commerce was up 12%. Nike is at a 50% two- year growth online.
- The board noted no real resistance to price, with actual growth in premium business.
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