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Highlights from Nike's Q314 Earnings Conference Call

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Below are some highlights from Nike's (NYSE: NKE) third-quarter earnings conference call:

  • Delivered robust growth in a well balanced way across the whole portfolio
  • Q3 Highlights
    • Released new cleats for Super Bowl.
    • Launched new collection.
    • Both Canadians mens and womens hockey teams wore Nike's hockey jersey.
  • When it comes to innovation we pride ourselves as being the trend setters
  • Nike brand growth across all categories especially in sportswear,runwear, basketball.
  • Running business showing great results with double digit growth
  • Nike also drives growth by targeting its resources against the greatest opportunities
  • Continued success in basketball comes from creating the best products
  • Q3 jordan milestones
    • Largest launch ever with the jordan 11
    • First jordan store opened in NYC called flight 23
  • Emerging markets show significant opportunity in the near and long term
  • Consumer demand in mexico remains strong
  • Across the rest of the emerging markets seven territories reported double digit growth
  • Nike brand remains strong in north america
  • Greater china market grew 17%
  • We made changes to supply chain that are improving inventory levels in the marketplace
  • Still have work to do in china but feel great about the progress
  • We are setting the foundation for our long term growth in china
  • Growth was broad based in western europe
  • Success in western europe is no surprise our restructuring two years ago has improved the experience for our consumers and strengthened our brand
  • Goal is to provide profitable growth in short term and invest so we can have profitable growth in the long term
  • We expect fx headwinds will reduce our eps for the q4 and 2015
  • The level of spending has been lower than expected as we shifted investment
  • Cash conversion cycle continues to improve
  • Significantly higher sales for nike.com
  • Key objective in resetting the china market is increasing the profitability of our retail business
  • Business in japan continues to generate positive momentum
  • This years devaluation of emerging markets currencies will be a drag on next years margin growth

Q&A

  • Pricing strategy revolves around our price value with the consumer
  • Strength of brand allows us to command a premium price
  • Limited resistance in bringing premium to the the market
  • Very bullish on the young athletes business

Posted-In: Earnings News

 

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