nike q1 2020 earnings call

And we're continuing to execute on the incredible opportunity we see in women's apparel. For example, we're studying the fit of our products to serve more body types with our successful plus-size line. … We extended our lead in Europe in Q1 with the NIKE Brand rated the number-one favorite brand in all of our key cities, and our business growing at strong double-digit rates in London, Berlin, and Milan. A point or two of growth in North America is a pretty significant impact. Our athletes are doing the same. APLA is an extremely entrepreneurial and diverse geography. NIKE, Inc. (NYSE:NKE) Q1 2020 Earnings Conference Call - Final Transcript Sep 24, 2019 • 05:00 pm ET NIKE is staying on the offense and looking to extend our leadership position. And in particular, I'm focused on how we will leverage consumer data and insights in our digital ecosystem to understand and serve consumers better and ultimately increase our competitive advantage. When coming together with another platform or retailer, our objective is to create a better experience in the path of the consumer. By continuously adding new styles, we expand these popular platforms. Yeah. And so, whether it is the manufacturing through supply chain and the automation opportunities that exists, whether it's using robotics or other ways to improve the efficiency and effectiveness. Turning to the results. Our latest film celebrates sport as a source of inspiration from Serena and Venus Williams and You Can't Stop Sisters to a sport -- a spot [Phonetic] celebrating Kobe Bryant who continues to inspire athletes all over the world on and off the court. We're also reimagining and clearly segmenting our top Sportswear franchises like the Air Force 1 and Tech Fleece. Before I get into our Q1 performance, I want to take a moment to acknowledge the passing of John Thompson last month. We still see that geography as sustaining strong, healthy, mid-single digit growth. This quarter, we were incredibly excited to announce that Zion joined the Jordan family. Benjamin Rains. Based on trade and other dynamics, we continue to be deeply engaged with all of our constituents in China and we're also closely monitoring consumer sentiment. But even in our foundational business, I think we've got tremendous upside ahead in terms of core. Sales, however, increased by 67.81% over the previous quarter to $10.59 billion. Marketplace inventory is healthy and within our targeted guardrails. It's the source of brand energy but also tremendous growth for us. Andy Muir -- Vice President of Investor Relations. I think we're actually a lot smarter about how we not only where we invest in terms of new product innovation, but as I said, we better leverage that innovation across multiple categories and then up and down the price point spectrum across genders. I feel really good both Footwear and Apparel. Matt Friend -- CFO, Operating Segments and Vice President, Investor Relations. To access the live webcast, log on to http://investors.nike.com Good afternoon, everyone. 24, 2020 – NIKE, Inc. (NYSE:NKE) today reported fiscal 2020 financial results for its third quarter ended February 29, 2020.. Sure. (RTTNews) - Nike Inc. (NKE) will host a conference call at 5:00 PM ET on Sept. 22, 2020, to discuss Q1 21 earnings results. Let me take a few minutes to walk through each of these points. The company has a market cap of $182.5 billion. News; Products. Our stronger than projected overall growth reflects healthy, balanced growth across all four of our geographies led by NIKE Digital globally and Greater China. And third, our consumer-led digital transformation is clearly a catalyst for long-term revenue and earnings growth. The key to expanding our competitive edge continues to be our total commitment to the consumer through the Consumer Direct Offense. Across the wider business, we stayed intensely focused on the apparel classifications that matter the most to the female athlete, bras and tights. Recall that the impact of foreign exchange hedges is not accounted for within our revenue line item. Inventory, as we spoke about, was up 12% versus prior year. Nike Inc Q2 2021 Earnings Call Dec 18, 2020, 5:00 p.m. It was also a tremendous stage for NIKE innovation. Welcome to NIKE, Inc.’s Fiscal 2021 Second Quarter Conference Call. NIKE, Inc. Q2 2021 earnings call dated Dec. 18, 2020Corporate Participants: Andy Muir — Vice President, Investor Relations. And then I have a follow-up -- another follow-up for Mark as well. With that, we'll now open up the call for questions. No. If I was to tell you the one thing that we're not as pleased about are the FX headwinds that have impacted us. One, the strategic transformation of NIKE continues to be the fuel for accelerating broad-based growth across our global portfolio. Act 0.68 Est 0.647 Q3 2019 Nike Inc Earnings Call 03/21/2019 05:00 PM (EDT) NKE. Membership sits at the heart of that strategy giving consumers a more personal relationship with NIKE. Thank you. We also drove strong double-digit growth in contactable members. You watch a game on TV and you want to go out for a run, right. Nike Inc Q3 2020 Earnings Call Mar 24, 2020, 5:00 p.m. 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 just as our continuous product pipeline, we continue to innovate in the retail space. Obviously digital growth is driving much of Nike's overall growth, and that's important obviously for Direct, but also the digital based business with our partners, both wholesalers who are expanding their growth through the digital channel as well as digital platforms. And as Mark just touched on, we've never been more excited about the innovation pipeline we're bringing to market, and that means bringing tangible value to the consumer. Looking forward, we believe that NIKE is stronger and now even better positioned to drive separation than prior to the pandemic. Our fundamentals are strong, but what excites me the most is the significant opportunity ahead for our industry and for NIKE. Nike said earnings for the three months ending in August, the group's fiscal first quarter, were pegged at 95 cents per share, or $1.52 billion, a 10% increase from the same period last year. In the second half, we expect to begin seeing sequential improvement in full price sales, but we do expect a continuation of higher markdown activity in our factory stores to sustain conversion rates on lower traffic. 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. The 30% DTC growth, obviously that's a huge number -- a smaller piece of the business, but you talked about that being still kind of being offset by the intentional reduction in undifferentiated wholesale. It's impacting everything we do from how we create product to how we assess demand and plan supply, all the way through to consumer services through the NIKE app that are now not just in our digital offerings, but they're in our retail stores and increasingly in our partner doors. Our momentum is building and more importantly our market share is accelerating around the world. Our innovation pipeline demonstrates both our strength as well as our endurance. NIKE, Inc. Terrific rebound in the business. Download this Press Release BEAVERTON, Ore.--(BUSINESS WIRE)-- NIKE, Inc. (NYSE: NKE) plans to release its first quarter fiscal 2020 financial results on Tuesday, September 24, 2019, at approximately 1:15 p.m. PT, following the close of regular stock market trading hours. Calendar Earnings Calls Earnings Transcripts SEC Docs. Perfect. Again, that's in the context of our slightly improved guidance. So, the impact of tariffs is most significant in Q2, and then as you likely inferred from our guidance, we expect slightly greater gross margin expansion in Q3 and Q4 as compared to Q2. Celect's capabilities are first of their kind in our industry. And we believe that by running that offense, we will see more productivity in our demand creation spend and a higher return on our demand creation spend. We've had a little bit of pressure on supply, but you're going to see the rates of growth in North America Apparel accelerate over the balance of the year. You also asked about the impact of tariffs. For gross margin, we expect Q2 expansion to be roughly 25 basis points with slightly greater expansion than that in the second half of the year. Sure, Bob. NKE’s fiscal 2021 EPS figure is then projected to climb 18.1% higher than our 2020 projection. Despite varied recovery curves and macroeconomic dynamics, our geographies have some key themes in common in Q1. Zacks Equity Research Zacks Published. Welcome to Nike, Inc.'s Fiscal 2020 First Quarter Conference Call. Women's Apparel will lead with new materials in performance tights. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. Especially during times of heightened safety measures due to COVID-19, this allows our teams to serve higher levels of digital demand with greater efficiency and precision. With our breadth and depth, no one has the advantage in this space that NIKE has to directly connect with consumers. Though health and safety remain paramount, you can just feel the optimism and excitement of sport coming back. Now, let's turn to the details of our first quarter financial results and operating segment performance. Really appreciate that color. 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. It's become the largest and fastest-growing platform in our portfolio growing almost triple-digits this quarter. With services, we're bringing real value to our member's lives consistently. Thanks very much and nice quarter guys. Andy Muir - VP, IR. Over the last three years, we've more than doubled the number of active users across all of our apps. Q1 marks the 21st consecutive quarter of double-digit revenue growth in Greater China. Leading today's call is Matt Friend, CFO, Nike operating segments and Vice President, Investor Relations. There's much more to come from NIKE innovation in fiscal year '20. Greater China, EMEA, Japan and South Korea have already returned to growth. Direct to consumer sales are expected to rise YOY. I guess, dovetailing off Kimberly's question, how helpful was improving digital markets -- I'm sorry, digital margins in those markets in this quarter? The company has a market cap of $182.5 billion. Sure. Information presented was current only as of the date of the conference call and may have subsequently changed materially. Gross margin decreased 90 basis points in Q1 versus the prior year as a result of impacts from COVID-19, including higher promotions to reduce excess inventory across the marketplace and higher supply chain costs. By Riley Jones. John Donahoe - President and CEO. Sportswear continues to lead all categories in both Footwear and Apparel, growing strong double-digits. There are a few elements that are important for me to highlight here. So, with a little bit of time, we have a lot of levers we can work with from sourcing to other levers. For instance, we reenergized the iconic Air Max 90 this year and it was one of the quarter's top growth drivers. Kimberly Greenberger -- Morgan Stanley -- Analyst. ET. With Zodiac, we've acquired proprietary technology and teams to better know our members, give them better experiences, and expand their lifetime value to the NIKE Brand. NIKE, Inc. Reports Fiscal 2020 Fourth Quarter and Full Year Results. As you've seen over the last two quarters, our priorities are clear. To the extent non-public financial and statistical information is discussed, presentations of comparable GAAP measures and quantitative reconciliations will be made available at Nike's website, http://investors.nike.com. We feel really good about our partners in Europe and in China, and then also growing through the digital channels here in the United States with partners like Instagram through social media. We expect reported revenue growth in Q2 to be in line with our Q1 reported revenue growth. As the operator indicated, participants on today's call may discuss non-GAAP financial measures. Our teams continue to be very active in this space. After the closing bell on Tuesday afternoon, Nike will report the firm's financial performance covering fiscal Q1 2020, or the quarter just in August to simplify. Nike shares have added about 11.9% since the beginning of the year versus the S&P 500's gain of 1.6%. Nike Inc. (NKW) held their Q1 FY21 earnings conference call on September 22, 2020. And so, we're continuing to focus on the strategy and the shift because we think it's the right thing to do long-term, and that's where our focus and attention is going to be at this time. The company reported earnings of $0.86 per share on revenue of $10.7 billion. The digital capabilities that we're creating and investing in are really going to make us a better innovation company, understanding the consumer, serving the consumer, leveraging the innovation that we invest in. For example, we drove significant leverage in our demand creation spending versus prior year in the last few quarters, creating fewer but significantly more impactful brand campaigns. Cumulative Growth of a $10,000 Investment in Stock Advisor, Nike Inc (NKE) Q1 2021 Earnings Call Transcript @themotleyfool #stocks $NKE, Nike Inc (NKE) Q2 2021 Earnings Call Transcript, Nike Pops in After-Hours Trading on Surprise Q2 Growth, Stocks Finish Friday Lower, But Nike Gets an After-Hours Earnings Boost, Copyright, Trademark and Patent Information. And here on the West Coast, we're continuing to deal with the wildfires that have hit Oregon, Washington and California. Building on our foundational strengths, there are three structural tailwinds that play to NIKE's advantage. Q1 2020 Nike Inc Earnings Call 09/24/2019 05:00 PM (EDT) NKE. Company Participants. Jordan followed up that record-breaking year with a quarter of healthy double-digit growth in all geographies, including mid-teens growth in North America. Growth was broad-based across our categories and amplified by strong double-digit growth in NIKE Digital. To do that, we're investing in three areas. Act 0.68 Est 0.647 Q3 2019 Nike Inc Earnings Call 03/21/2019 05:00 PM (EDT) NKE. Color on that would be helpful. In APLA, we continue testing new concepts with local partners such as our digital commerce relationship with Flipkart in India to leveraging the social media platform Kakao in Korea on the launch of Joyride and on-ramping new members. Thank you, Mark, and hello to everyone on the call. Your line is open. Revenues rose 5 … I'll go a little deeper in one, just as an example. Performance footwear resonated with consumers in APLA this quarter, as we saw strong results from the Alphafly NEXT% and the Pegasus 37. We see some pretty systemic drivers of gross margin expansion over the short, medium and long-term. Here is how the company's reported EPS has compared to analyst estimates in the past:Quarter Q1 2020 Q4 2020 Q3 2020 Q2 2019 EPS Estimate 0.47 0.09 0.59 0.57 EPS Actual 0.95 … Thanks very much. And I feel like this has always been a competitive advantage for NIKE. Nike (NKE) came out with quarterly earnings of $0.95 per share, beating the Zacks Consensus Estimate of $0.48 per share. In addition, participants may discuss non-GAAP financial measures, including references to constant dollar revenue. John J. Donahoe II — President and Chief Executive Officer. Eliud Kipchoge broke the two-hour barrier in a prototype of the Air Zoom Alphafly NEXT%. Just help us get our hands around the various drivers of the gross margin this quarter. ET. However, Q1 did benefit from about 55 basis points of one-time accrual reversals that we had incurred in Q4. Jordan has also continued to excite the consumer with locally relevant product, like the AJ XXXIV, Rui Hachimura, which was Japan's best-selling basketball launch ever. Got it. Your line is open. SG&A declined 11% in Q1. But yeah, so it starts with where John was in his prepared remarks. 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