Market Overview

Highlights from Nike's Q314 Earnings Conference Call

Share:
Related NKE
Is Adidas Cool Again?
Golden State Warriors Are Dominating The NBA...And Wall Street
Nike, Constellation Brands Lead IBD 50s Ready For Super Bowl Sunday (Investor's Business Daily)

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

 

Related Articles (NKE)

View Comments and Join the Discussion!

Get Benzinga's Newsletters