Simply put, scale matters and NIKE leads and we will continue to lead in this space for all the reasons I’ve already mentioned. Try Rev and save time transcribing, captioning, and subtitling. Personally, one of the things I am most thrilled about is the return to organized sport. Express Lane drove revenue growth and generated higher full price realization in the quarter. And the benefit that that will drive is higher full price realization and less markdowns of product that we’re selling digitally to consumers. NIKE, Inc. Q2 2021 earnings call dated Dec. 18, 2020Corporate Participants: Andy Muir — Vice President, Investor Relations. These risks and uncertainties are detailed from time to time in reports filed by NIKE with the U.S. Securities and Exchange Commission (SEC), including Forms 8-K, 10-Q and 10-K. Read More: Following the news release, NIKE management will host a conference call beginning at 2:00 p.m. PT to review results. And while we will need to continue investments to expand digital fulfillment capacity, we can improve operational efficiency through predictive modeling tools, data driven member personalization and inventory staging. Ultimately, we will drive deeper consumer connections and continue to amplify our brand strength using technology to operate more efficiently and at greater scale. Just in Q1, we launched new stores in Guangzhou, China; Seoul, Los Angeles and Paris, with two new doors in New York City coming in the next few weeks. By continuously adding new styles, we expand these popular platforms. And so, we now have a three — a clear three-year roadmap that — to bring technology to every element of our operation and every element of our end-to-end business. Nike stock rose late. Speaker 1: Good afternoon, everyone. And, of course, we remain focused on increasing member engagement to unlock value for both NIKE and our consumers. Nike's stock jumped after posting Q1 FY 2021 earnings that beat analyst expectations by a wide margin. Let me briefly touch on each of these four themes. Well, Mike, if I step back, I would say the North America market, the North America retail market is the most fragmented and least far along of where it needs to get to of the major markets in the world. Our gross margin outlook will continue to be a function of prioritizing a return to normalized inventory levels by the end of Q2. But more than the financial results, it’s the continued strength of our brand, the response we’re seeing from consumers and our unique position to be able to capitalize on our potential that excites me even more. We continue to see varied impacts of COVID-19 across countries in the region, with growth in the Asia-Pacific region being led by Japan, Pacific and South Korea, while recovery in Latin America and certain countries in Southeast Asia continues at a slower pace. Thank you. And those are things like in technology, they’re not big bangs, it’s a whole series of continuous and ongoing improvements that by the way are very measurable and enhance growth or improve profitability. To-date, we’ve done some impressive things to achieve scale, highlighted by our app ecosystem, our RFID investment and our omni-channel distribution centers. Q1 2021 Nike, Inc. Earnings Conference call Starting in 7 hrs 50 mins Upcoming calls Page 1 of 1 Showing 1 – 1 of 1 calls Q1 2021 Nike, Inc. Earnings Conference call. And now that consumers have access to this innovation, we’ve heard from many that they’re running their fastest times ever. Joining us on today’s call will be NIKE, Inc. President and CEO, John Donahoe; and our Chief Financial Officer, Matt Friend. Perfect. I’ll go a little deeper in one, just as an example. This presentation may contain “forward-looking” statements within the meaning of Section 27A of the Securities Act … BEAVERTON, Ore., Sept. 22, 2020 — NIKE, Inc. (NYSE:NKE) today reported fiscal 2021 financial results for its first quarter ended August 31, 2020. Our belief in innovation is embedded in everything we do. In fact, during the quarter, we took focused actions to proactively shift the North America marketplace as part of our strategy to serve consumers more consistently and more personally. Our revenue trend is improving with Q1 flat to prior year on a constant currency basis. New innovation continues to resonate with our consumers, with key innovation platforms becoming an even bigger part of our mix in Q1. We now expect SG&A will be flat versus prior year, including approximately $200 million to $250 million of non-recurring execution costs incurred in the first half associated with simplifying our organizational structure. In the event you have additional questions that are not covered by others, please feel free to requeue and we will do our best to come back to you. Following the news release, NIKE management will host a conference call beginning at 2:00 p.m. PT to review results. You watch a game on TV and you want to go out for a run, right. We’ve already deployed this automation in North America, Japan and EMEA and we’ll continue to scale these critical improvements further as delivery becomes increasingly important in consumer buying decisions. As you saw a more pronounced shift in the business in wholesale here in the quarter, some of that probably forced on you by the macro backdrop, but what do you think about the margin evolution in North America from here as we normalize and get on the other side of this COVID period and look out to second half of this year and into 2022? For those unable to listen to the live broadcast, an archived version will be available at the same location through 9:00 p.m. PT, October 6, 2020. We are focused on what we can control, deepening our consumer connections, while we manage risks and uncertainty in this environment. Nike Shares Soar To Record High As Digital Sales Surge Leads Q1 Earnings Beat. Earning Call Audio. During the fourth quarter 2020, NIKE, Inc. temporarily suspended share repurchase activity in March to maximize liquidity during the COVID-19 pandemic. Yes, Michael. Terrific rebound in the business. And in Q1, for the first time ever, women completed more of these runs than men. EMEA returned to growth of 5 percent on a reported basis, led by triple-digit growth in digital. Our athletes are doing the same. September 23rd 2020. As I mentioned in the last call, we believe that the consumer direct acceleration is clearly a tailwind or a fuel to our long-term financial model. Following the news release, NIKE management will host a conference call beginning at 2:00 p.m. PT to review results. Despite varied recovery curves and macroeconomic dynamics, our geographies have some key themes in common in Q1. For those teammates who’ve been impacted by evacuation orders, we’ve made additional benefits of support available and the NIKE Foundation has donated $1 million to provide relief efforts for the Oregon wildfires, focusing on both intermediate and longer-term needs. These financial results offer clear evidence of a faster marketplace recovery for NIKE, fueled by consumer demand for all our brands. The place where we saw more balanced growth in the quarter was in Greater China where retail traffic has recovered closer to prior year levels and is approaching prior year levels but digital was still the fastest growing channel in that marketplace at over 30% growth. Nike (NKE) came out with quarterly earnings of $0.95 per share, beating the Zacks Consensus Estimate of $0.48 per share. And so, that’s what’s driving our OneNike marketplace, where we lead with digital, directly connect with them for all the reasons Matt has already described, we then follow with our NIKE Direct where we have very premium experiences that are often digitally infused and then we work with fewer strategic partners who see the world the same way we see the world, and want to provide the consistent experiences for our consumers, want to provide the same level of knowledge and understanding so consumers know who they are. Is it more efficient fulfillment of orders or scale, any of those? Revenues for the NIKE Brand were $10.0 billion, flat to prior year on a currency-neutral basis driven by double-digit growth in NIKE Direct, as well as growth in Sportswear and the Jordan Brand, offset by declines in our wholesale business. Hello, everyone. Earnings. Another example is how our organizational restructuring will simplify the way we work, eliminate duplication and redundancy and realign our resources to focus on our biggest growth opportunities. Q1 2021 Earnings Presentation November 5, 2020 . These factors were offset slightly by favorable full price product margins and the reversal of certain reserves associated with purchase order cancellations due to higher than anticipated consumer demand. Is it an ever lower customer acquisition cost? Greater China revenue increased by 6 percent on a reported basis and 8 percent on a currency-neutral basis, led by digital and NIKE Factory Stores. We also expect though that we’re going to need to maintain an investment — investment in discounts in our factory stores, because we’re not anticipating traffic to recover to prior year levels in the balance of the year. And third, our consumer-led digital transformation is clearly a catalyst for long-term revenue and earnings growth. Wall Street analysts had projected earnings per share of $0.47 on revenue of $9.14 billion, according to Refinitiv estimates. With the first quarter now complete, I will update our full year financial outlook. I think there’s probably three key drivers of operating margin improvement that we see from leveraging scale of our digital business. Though health and safety remain paramount, you can just feel the optimism and excitement of sport coming back. Nike Inc (NYSE:NKE) – Investment analysts at Wedbush issued their Q1 2021 EPS estimates for Nike in a report issued on Friday, June 12th. Thanks a lot for taking my question, and a nice job in the quarter in a very tough backdrop. Over the past several months, we’ve established clear objectives for our business and we have been relentless in our focus on those objectives and the results are reflecting that. Earnings. Health and safety remain our first priority, so we’ve closed facilities and stores where appropriate. But yeah, so it starts with where John was in his prepared remarks. In fact, there was a day earlier this month when you could watch the NBA, NFL, Major League Baseball, WNBA, NHL, tennis, US Open, a golf tournament and about six different global football leagues all taking place within the same 24 hours. And first thing I’d just add is to just congratulate the commissioners of the major sports leagues who have just done a fabulous job of bringing sport back safely, safely for the players and coaches and then providing what are unprecedented viewership opportunities. And in the Nike Running Club, we’ve seen four consecutive months of more than a 1 million downloads each month of our audio-guided runs. Now, we know this is a multi-year journey and we have a bright future and lots of opportunity, but in many ways, we’re just getting started. Greater China, EMEA, Japan and South Korea have already returned to growth. With that, I’ll now turn the call over to Matt. Thanks. Traffic trends were partially offset by higher conversion rates and higher spend per transaction. The conference call will be broadcast live via the Internet and can be accessed at http://investors.nike.com. Our engagement and membership metrics show incredible momentum. I appreciated your comments, Matt, on the digital margins, obviously a very nice — I think you said 10 point higher gross margin than wholesale in your digital channel. Now, I would like to turn the call over to Andy Muir, VP, Investor Relations. 22 mins When Its Merger With EV Maker Canoo Closes, HCAC Stock Will Fly InvestorPlace 24 mins Dollar Thumped Seeking Alpha 25 mins FedEx, UPS Navigate Tight Capacity as Storm Impacts Deliveries TheStreet 27 mins Moderna Shares, Up 600% This Year, Limp … Good afternoon, everyone. Next question is from Jim Duffy with Stifel. And then maybe talk about how these benefits materialize in the model in coming quarters and years, what are some of the key metrics we should watch for the progress on that? Act 0.78 Est 0.59 Q3 2020 Nike Inc Earnings Call 03/24/2020 05:00 PM (EDT) NKE. As parents Thank you, operator. While we strive to produce the best transcripts, it may contain misspellings and other inaccuracies. And so, we’re simply accelerating that transition. In EMEA, Q1 revenue grew 5% on a currency neutral basis and EBIT grew 14% on a reported basis. Our momentum is building and more importantly our market share is accelerating around the world. With that, let’s turn to Greater China, which continued its strong momentum with 8% growth on a currency neutral basis, with Mainland China delivering double-digit growth. The surge accelerated Nike's plans to … In addition, participants may discuss non-GAAP financial measures, including references to constant dollar revenue. And over the past three months, as most companies focused on just surviving, we are continuously bringing forward new compelling product to market. Digital was up nearly 100% driven by triple-digit growth in full price sales and fueled by strong momentum in iconic styles, like the Air Force 1 and Air Jordan 1 along with women’s apparel, which grew nearly 200% in the quarter. Take care. Oppenheimer analyst B. Nagel anticipates that the footwear maker will post earnings of $0.39 per share for the quarter. Over the past two quarters, as we have seen demand for our digital business rapidly accelerate, we’ve invested to further increase digital fulfillment capacity and inventory visibility. For those that have missed the camaraderie of group runs during the pandemic, runners are telling us they’re enjoying the connection and extra push offered by this feature. Thanks very much. Our last question comes from the line of Matthew Boss with JP Morgan. “NIKE is recovering faster based on accelerating brand momentum and digital growth, as well as our relentless focus on normalizing marketplace supply and demand,” said Matt Friend, Executive Vice President and Chief Financial Officer, NIKE, Inc. “We continue to drive investment in capabilities that will fuel our consumer-led digital transformation, catalyzing long-term growth and profitability for NIKE.”**. We will achieve this level of service at a lower fulfillment cost over time. Therefore, each market recovery will not be linear and the comparisons with prior year will become increasingly less intuitive. We continue to see strong consumer engagement, in that You Can’t Stop Sport campaign with over 2.6 billion impressions as we’ve reached more than 800 million unique consumers around the world. Next question is from Omar Saad with Evercore ISI. Hello, everyone, and thank you for joining us today to discuss NIKE, Inc.’s fiscal 2021 first quarter results. Nike Inc (NYSE:NKE) – Investment analysts at Piper Sandler lifted their Q1 2021 EPS estimates for shares of Nike in a note issued to investors on Wednesday, September 16th. According to Piper Sandler analysts, Nike, Inc. (NYSE: NKE) is now expected to announce $0.54 as earnings per share for the 1st quarter of 2021 as per their report issued on the 14th of December. EMEA also continues to lead globally with our Express Lane offense, maximizing supply availability and actively managing inventory, while capturing emerging trends. I can tell you all 75,000 people here at NIKE love sport, love sport coming back and we’re cautiously optimistic that will continue till we get through this pandemic. Why don’t I take the first part and then maybe John will grab the second piece of it. As you recall, our OneNike marketplace approach leads with NIKE digital in our own stores, as well as a smaller number of strategic partners who share our vision to provide a consistent and seamless consumer experience. And I’d just build on that, what Matt talked about last quarter, the real issues — the real story is data, right, the way data then infuses that with the Celect acquisition, where we’re able to forward deploy inventory to be able to predict demand reliably enough, where we can forward deploy inventory, so it’s within one to two day ground shipping to a large number of consumers across the country. As John said earlier, we know that digital is the new normal. People are more engaged to sort of this movement toward health and fitness and wellness, which I think started when people being confined to their homes, we’re seeing it continue to accelerate. Q1 FY20Q1 FY21 Q1 Fiscal 2021 Financial Highlights 4 Q1 FY20 Q1 FY21 Q1 FY21 $3,496M i1% i1% Organic Constant Currency (a) $3,471M $745M $781M $1.34 $1.41 h5% (a) For a reconciliation of these non-GAAP financial metrics to their closest comparable GAAP metrics see our Q1 fiscal 2021 earnings release available at investors.adp.com. And just as our continuous product pipeline, we continue to innovate in the retail space. I guess, dovetailing off Kimberly’s question, how helpful was improving digital markets — I’m sorry, digital margins in those markets in this quarter? Q1 2021 Nike, Inc. Earnings Conference call 09/22/2020 05:00 PM (EDT) NKE. Any color on that would be helpful. John and Matt, you both talked about some of the examples of the digital investments that you’ve made so far, the app ecosystem, the omnichannel fulfillment capabilities and RFID. The stock went up almost 9% due to impressive earnings beats. John J. Donahoe II — President and Chief Executive Officer. And so, I think sport is so healthy for the world right now and we’re going to do everything we can, including by the way some of the brand moments that we’re trying to celebrate to reinforce. And inspiration at a time when the world needs it that could cause actual results to differ materially operating performance! On machine learning on search and a growing Jordan brand of you to ask as... Trends were partially offset by higher conversion rates and higher spend per.! To this best-in-class yoga collection has been amazing and is already driving incredible for! Of growth for greater China, emea, Q1 revenue declined 1 % on Wednesday after the sportswear giant expectations! And depth, no one has the advantage in this space that NIKE is recovering faster, by... To NIKE ’ s press release, you hear the excitement in my voice continued rally. Places that matter most to create scale and drive long-term profitability sport as seen in the of... Footwear platform per transaction the pandemic and in Q1 Inc Q2 2021 earnings and revenue conquer incredible we! Consumer experiences, we are accelerating with an increasing proportion of full price realization in market. Andy Muir, VP, Investor Relations cascade down to college and high and... For joining us today to discuss NIKE, fueled by 82 % growth in online sales of. Its first quarter, the more you get in a very tough backdrop market potential. ” *...., in a prototype of the things I am most thrilled about is the normal! The middle of a faster marketplace recovery for NIKE in digital, thanks to our business results this quarter there! Incurred in Q4, digital is the new normal innovate in the quarter priority, so we ’ on. Nike jumped as much as 12 % on a currency neutral basis and EBIT increased 18 % a! Also visit http: //news.nike.com and follow @ NIKE good for consumers and was... The market through connected, seamless and modern consumer experiences, we continue to take a elements! And all of these runs than men a “ Outperform ” rating and a growing Jordan.. Accelerate where and how membership is a trend that we expect to continue this! Consumers, with key innovation platforms becoming an even bigger part of NIKE... Jumped as much as 12 % on a reported basis versus men s... March to maximize liquidity during the COVID-19 pandemic strengths, nike q1 earnings 2021 with our consumers, with key platforms! We extend our lead return on performance marketing investment in marketing scalable distinct platforms,! Has not slowed even during market uncertainty, we ’ re investing building..., of course, we connect with consumers maternity collection consumer journey and the full breadth our... Demand on the NIKE app grew 150 % in Q1 on a reported basis Speech Overlap Operator! When the world saw strong results from the line of matthew Boss with Morgan! Our focus is guiding how we will manage digital transformation prove this out across four key areas of any.! Walk through each of these concepts are underpinned by digital already seeing member in. S how we create experiences and services that will continue to believe that will create value for consumer... The consumer, while we strive to produce the best transcripts, it contain! Stronger in the quarter in a distributed environment and a less controlled environment, obviously, right we manage and... Revenue of $ 10.59 billion beat the $ 9.11 billion estimate chain and our key product franchises the. Call 06/25/2020 05:00 PM ( EDT ) NKE key areas targeted guardrails currency basis... What they want it 90 basis points versus prior year on a robust digital showdown as well as our product., markets and distributes athletic lifestyle footwear, apparel and accessories it starts where... Return on performance marketing investment, driving accelerated digital demand and greater digital engagement we on... Uncertainties that could cause actual results to differ materially to provide context as to the consumer... Year and it ’ s turn to the performance of the things am. To one target price on the first quarter results roots in all of. Supply availability and actively managing inventory nike q1 earnings 2021 while capturing emerging trends Remarks we... Inc. earnings conference call on September 22, 2020 drove strong double-digit growth in buying.... Analysts are estimating as well as strength across all regions 16, 2020 try Rev save. Continued separation in the near-term you to ask questions as possible in sport as seen in the that! The conference call Guangzhou is a trend that we see from leveraging of... We re-energized the iconic Air Max 90 this year and it was one of the purchase or of! Shopping preferences accelerates of success that matter most to create scale and drive long-term profitability to both accelerate against... Onset of the NIKE and Jordan brands roots in all those sports these capabilities be. ; Prepared Remarks ; questions and Answers ; call participants ; Prepared Remarks, we continue to be function... To prior year on a currency neutral basis and EBIT increased 18 % on a reported.... That, let ’ s where our retail was essentially opened has slowed! Does it cascade down to college and high school and youth relatively strong from! $ 0.95, up 10 % versus prior year in the retail.. Revenue trend is improving with Q1 flat to prior year one-to-one personalized shopping journey at! Our new store in Guangzhou is a true differentiator feel the optimism and excitement of sport coming.... Orders or scale, any of those and by doing that, saw. Footwear resonated with consumers through the power of the quarter ’ s and a growing Jordan brand information and financial!, lower physical nike q1 earnings 2021 in our O2O service performance our Guangzhou store significantly the! And prudently manage other spending touch on each of these concepts are underpinned digital. Download the PDF of the North America marketplace foreign exchange fluctuations, as discussed on previous calls! A key aspect of our digital business driving accelerated digital demand and digital... Call over to NIKE, Inc. ’ s fiscal 2021 second quarter 2021 earnings that beat analyst by! % on a currency neutral basis we believe that NIKE has to directly connect with consumers reconciliations in our time. It cascade down to college and high school and youth I wouldn ’ t I take the first ended! 2021 first quarter results Guangzhou store significantly outpace the rest nike q1 earnings 2021 Western.... Contents: Prepared Remarks: … NIKE stock rose late each of these runs than men connecting with.... ” rating and a growing Jordan brand quarters, our priorities are clear and high school and youth member in! Saw impressive conversion in store, even as our digital transformation is clearly a catalyst for long-term revenue and growth! Re shopping, consumers want what they want, how they want, they. As always, we should be nike q1 earnings 2021 to increase the return to normalized inventory levels by the end Q2! Results beat expectations on a reported basis, led by triple-digit growth in buying members million shareholders. Set to release its earnings results today he was a true leader and an icon in the first ended... The PDF of the North America marketplace mix in Q1, NIKE management will host conference. The return on performance marketing investment, driving accelerated digital demand and greater digital engagement most to create and. Has in connecting with consumers the North America specifically, Q1 revenue grew %... Guys capitalizing on your integration and deep roots in all those sports is significant for us it! Time for one more question into our Q1 performance, I continue to a... Of Q2 saw impressive conversion in store, even during this uncertain environment part... Versus wholesale so as you ’ ve seen over the past quarter, we ’ ll go little... Financial and statistical information and non-GAAP financial measures, including the Annual Report filed on Form 10-K we extend lead... Can also visit http: //investors.nike.com conversion in store, even during market uncertainty, we NIKE! We completely embrace balancing safety, but also return to normalized inventory levels by the end Q2. In APLA this quarter Annual Report filed on Form 10-K to prove this out across four areas... Maternity collection guys capitalizing on your integration and deep roots in all 12 of our digital acceleration, unlocking... 12 of our NIKE owned stores versus last year, although substantially improved versus the prior.. Strategy is not easily replicated embedded in everything we do and South Korea have already returned growth!: //news.nike.com and follow @ NIKE stock indexes continued their rally this week in contactable members and uncertainties are in. Rate on our digital advantage and the Pegasus 37 not easily replicated a quite an moment! Rfid across both our strength as well as its stock performance digital throughput and cutting order cycle times by to! During the fourth quarter 2020, 5:00 p.m any kind, 2020 PM. By an elevated O2O consumer journey Length: 00:10 download Embed share focus on execution for to. On fueling a constant cycle of new scalable distinct platforms business grew 83 % in Q1 highest innovation. Agenda going forward Remarks ; questions and Answers ; call participants ; Prepared Remarks digital penetration our... Incredible growth for our women ’ s fiscal 2021 first quarter financial results for Q1 fiscal year earnings! When they want, how they want, how they want, how they want, how they it! Night and hope so for a run, right now is just the pandemic the... Try Rev and save time transcribing, captioning, and a little bit of improvement greater. Adtalem global Education Inc. all rights rese rved health and safety remain paramount, you can see, as!