You have very volatile actual spot rates. We had many product highlights this quarter. 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. Let's go a bit deeper on these three themes. We're growing at an accelerated pace in new areas like performance basketball, women's international, and apparel, and the Air Jordan 1 franchise continues to create incredible demand all over the world. In Q1, we launched Nike (M), NIKE's first dedicated maternity collection. At the same time, we are managing our business to deliver financial results that will set a strong foundation for growth and profitability in fiscal year '22 and beyond. Our whole product creation area -- one of the people that is most excited about the opportunity to digitize is our Head of Design, John Hoke, and just how digital can really enhance not only the productivity, but also the creativity of our designers. 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. So, incredibly high level of excitement. Our last question is from Jim Duffy with Stifel, Nicolaus & Co. Robert Drbul -- Guggenheim Securities LLC -- Analyst. Hello, everyone, and thank you for joining us today to discuss NIKE, Inc.'s fiscal 2021 first quarter results. Download this Press Release (PDF 17 KB) BEAVERTON, Ore.--(BUSINESS WIRE)-- NIKE, Inc. (NYSE: NKE) plans to release its first quarter fiscal 2021 financial results on Tuesday, September 22, 2020, at approximately 1:15 p.m. PT, following the close of regular stock market trading hours. And how are you guys capitalizing on your integration and deep roots in all those sports? Turning to the results. Yeah, absolutely. We would like to allow as many of you to ask questions as possible in our allotted time. That includes, for example, testing new services leveraging the NIKE App in partner doors such as in Washington Heights with Foot Locker. Welcome to Nike, Inc.'s Fiscal 2020 First Quarter Conference Call. There was also a little bit of an impact from foreign exchange in that inventory number. Next question is from Jamie Merriman with Bernstein. It was a great start to the year for Nike. Despite ongoing uncertainty, more countries are emerging from containment and have returned to growth, China, Japan, South Korea, the UK, France and Germany just to name a few. As we look at the second half as I mentioned in my remarks, we're expecting sequential improvement with a higher mix of full price sales. Andy Muir - VP, IR. Yeah, let me touch on the second question you had on digital partnerships. Thanks very much. Do the numbers hold clues to what lies ahead for the stock? So, I think the easiest way for me to say it is, FX will be about 3 points negative headwind on revenue, as I spoke about in my guidance. And the more you get in a distributed environment and a less controlled environment, obviously, the more challenging that is. I guess the question I have is -- I had two questions, really. The impact of digital in China has been nothing short of extraordinary. It's now a net negative from an EBIT perspective. Thank you, Operator. NIKE is bringing innovative, new product to market, at an unrivalled pace and scale. Analysts estimate EPS of $0.62 vs. $0.70 in Q2 FY 2020. Nike's growth continues to outpace GDP growth and broader retail growth in our major markets around the world, and NIKE continues to be the number one favorite brand in our 12 key global cities. In Q1, Greater China grew 27% on a currency-neutral basis fueled by nearly all key categories, led by Sportswear and Jordan. But yeah, so it starts with where John was in his prepared remarks. 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. NIKE entered the pandemic with unparalleled brand and business momentum. And then, of course, the overarching or maybe you'd say underlying fuel is this digital transformation of NIKE. The consumer today is digitally grounded and simply will not revert back. Sure, Kimberly. 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. Thank you, Mark, and hello to everyone on the call. Our Kids business is one that doesn't get a lot of attention on our calls, but it is in fact a critical part of our business. 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. One, the strategic transformation of NIKE continues to be the fuel for accelerating broad-based growth across our global portfolio. We're taking share, and our brand is just incredibly strong in all of our key cities in Europe. Got you. Now again, we guided to slightly improved overall gross margin even taking into account those tariffs, but the impact is more pronounced in Q2. While NIKE Direct is a key driver, our strategic partnerships with JD and Zalando are also contributing to our strong, sustained growth in Europe. ET. Now, let's turn to the details of our first quarter financial results and operating segment performance. Though health and safety remain paramount, you can just feel the optimism and excitement of sport coming back. Earnings Trends. Thanks for taking my question, and congrats on another great quarter. That includes the successful launch of joyride and strong sustained consumer demand for recently launched platforms from React to the range of compelling new Air Max platforms launched over the past two years such as VaporMax, 270, 720, and 200. Nike (NKE) Q1 2020 Earnings Preview: North America, China and More. In China specifically, we continue to extend Nike's lead. We will use data at to stay a step ahead and help us create a better product as consumer insights power our business end-to-end toward even greater growth. I wanted to ask my first question, another follow-up on North America. Following the news release, NIKE management will host a conference call beginning at 2:00 p.m. PT to review results. In Q1, NIKE active members increased nearly 60% with even higher growth in buying members. One might have expected the recently implemented tariffs and associated FX headwinds to result in lower real dollar expectations. Good afternoon, everyone. Thank you. Finally, in our APLA geography, Q1 revenue declined 12% on a currency neutral basis, including digital growth that exceeded 90%. So the only thing that I would say that that might even remotely sound like a deceleration is Greater China growth as the marketplace is normalized. We expect our effective tax rate to be in the mid-teens range, and for OI&E, we expect income in Q2 to be roughly $10 million to $30 million. In Q1, we came out of the block strong with our results meeting or exceeding expectations we set 90 days ago on every dimension. In fact, we can thrive in this environment, thanks to our digital advantage and the full breadth of our global portfolio. So again, we see tremendous momentum in North America. As you look at North America, John, as you've gotten into the business and had a chance to kind of think about the different regions, the sales growth in North America has been very strong for a couple of years gathering few billion dollars over the last few years, but the margins have been fairly stagnant there, despite the brand being very strong, obviously, gaining momentum. The strength of our brand, our compelling product and innovation, our leading digital ecosystem and more are all fueling our growing separation. By the way, that's continuous. With leadership from global sports icons like Naomi and NBA players like LeBron and Giannis, as well as the thousands of others who have stood up and spoken out, our athletes are having a profound impact on our society. Sure. Analysts:. The key to expanding our competitive edge continues to be our total commitment to the consumer through the Consumer Direct Offense. It's in fact growing at a very strong rate. Sure, Bob. We continue to bring fresh points of view to our most beloved footwear, Air Force 1, Air Jordan 1 and our deep lineup of Air Max. Contributor. Your next question is from Paul Trussell with Deutsche Bank. Obviously, right now, we're in the middle of a quite an uncertain moment and pandemic. Celect's team and proprietary digital demand-sensing tools will help us more effectively predict demand, plan supply, allocate product to the right stores, and sharpen our pricing and markdown cadence. Company Participants. Running will introduce more innovation that's proven to help make athletes faster as we head into Tokyo, and our adaptive platform will continue to evolve with new features like voice activation from your phone. So, those are the things that we expect from our digital platform partners. And as we've discussed, we see that continuing to build beyond that, and potentially accelerating toward that based on the incredible momentum that we've had. earnings. 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. But even in our foundational business, I think we've got tremendous upside ahead in terms of core. But I would also want to highlight that the strategy and the focus on shifting the marketplace exiting on differentiated wholesale distribution and focusing on our direct business and our strategic partners drove higher full price realization as well in both of those markets in the quarter, which also fueled our gross margin. Nike (NKE) Q1 2020 Earnings Preview: North America, China and More ... Our Key Company Metric estimates call for the sportswear firm’s North American revenue to … We're seeing high-single digit growth in differentiated retail with our strategic partners, and we're seeing an expected and in fact somewhat intentional and deliberate decline in undifferentiated retail, and the drivers of that are how we allocate product and where we put our retail investment dollars. I'll touch on this more specifically in our guidance. Login Signup. And what I'd say is that in North America, EMEA and APLA, we continue to deliver above or at 100% triple-digit growth in digital in the quarter. Let's conquer your financial goals together...faster. NIKE, Inc. Q revenue declined 1% and was flat on a currency neutral basis, as NIKE Direct grew 13% led by strong digital growth offset by declines in our wholesale business. We expect reported revenue growth in Q2 to be in line with our Q1 reported revenue growth. ET. The impact of tariffs will be most pronounced in Q2. In Kids, we're earning significant gains through core Footwear and Apparel for both boys and girls and in basketball, in the Air Max 270 which drove triple-digit growth for Kids Power franchises. 24, 2020 – NIKE, Inc. (NYSE:NKE) today reported fiscal 2020 financial results for its third quarter ended February 29, 2020.. Wanted to touch base on the gross margin performance. NIKE App at Retail is already showing the ability to scale with partners. 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. Participants may also make references to other non-public financial and statistical information and non-GAAP financial measures. 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. This quarter, our owned digital channel grew 83% on a currency neutral basis, driving almost $900 million of incremental revenue versus the prior year, and an acceleration versus the prior quarter even as our doors at retail reopened. These capabilities will be enhanced by our RFID investments, highlighting dramatic improvement we are making in our O2O service performance. And looking ahead, we are pulling forward the launch of the NIKE App in Greater China into late Q2. Thanks very much. During the quarter, the company repurchased 10.1 million shares for around $922 million As of November 2019, a total of 33.6 million … And I've never seen or been at NIKE during a period where there's such robust and strong innovation that's relevant to consumers across the portfolio. 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. We are scaling robotics and automation in our logistics operations, accelerating digital throughput and cutting order cycle times by up to 50%. Growth is being fueled by an increasingly stronger and diversified product portfolio, including across the Chuck Taylor franchise, the Chuck 70 and the Chuck Taylor Lift. The NIKE app and SNKRS app are now both live in over 20 countries, with more expansion coming over the balance of fiscal year '20. Sales, however, increased by 67.81% over the previous quarter to $10.59 billion. This would blow away Q4’s 10% decline, which also saw Nike fall short of quarterly earnings estimates for the first time in years. Following their prepared remarks, we will take your questions. The company reported earnings of $0.86 per share on revenue of $10.7 billion. Let's conquer your financial goals together...faster. Does that continue and does it cascade down to college and high school and youth? Third, I continue to be excited by the opportunity I see for NIKE in digital. Omar, we at our Investor Day a couple years ago talked about our business being 30% or greater digital owned and partnered over the next five years. 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. Stock Advisor launched in February of 2002. As for the second key theme, we are making deliberate investments both organically and through acquisitions to extend Nike's competitive advantage. And while we continue to navigate through uncertain dynamics, sport has returned; interest in activity and health, fitness and wellness has never been greater; consumer connection and engagement with our brands is growing; and NIKE is transforming the way we operate to better serve all consumers. And three, while the geopolitical and macro environment is increasingly volatile, and in some respects unpredictable, consumer sentiment for the NIKE Brand remains incredibly strong and consistent around the world. 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 start in our own channels and then amplify those experiences through partnerships. Really appreciate that color. At the same time, digital is transforming and amplifying everything we do at NIKE. And then, we also have been building inventory in anticipation of Singles Day on 11/11 in China. 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. Cumulative Growth of a $10,000 Investment in Stock Advisor, Nike Inc (NKE) Q1 2020 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. Joining us on today's call will be NIKE, Inc. President and CEO, John Donahoe; and our Chief Financial Officer, Matt Friend. This is significant for us as it speaks to the increasing consumer adoption of our apps. NIKE Direct is a significantly higher margin business than the wholesale business. We talked about Apparel, we talked about Women's, digital, international is examples. The business is performing well, that is. Making more athletes comfortable and confident can be an incredible catalyst to bringing more people into sport, and that's a theme we'll continue to champion as we lead into the Tokyo Olympics. It's an approach we're using with our Tech Fleece collection too, adding new silhouettes and shapes throughout our lines. Nike Inc. (NKW) held their Q1 FY21 earnings conference call on September 22, 2020. Maybe help us understand NIKE has obviously performed exceptionally in the past, but maybe if you can help us understand or give us insight into why that kind of broader platform seems to be performing so much more consistently than has historically. For those who want to reference today's press release, you will find it at http://investors.nike.com. Over the balance of the year, one thing to keep in mind is, it's somewhat difficult to predict --not to predict, but to model the impact of FX. Ultimately, we will drive deeper consumer connections and continue to amplify our brand strength using technology to operate more efficiently and at greater scale. So we would expect that trend to continue in the short-term. We've also begun a test -- to test a new opportunity within SNKRS on high-heat apparel. Thanks. September 24, 2019, 17:00 PM ET. So if you add that back, you get to a gross margin that's down roughly 145 basis points versus the prior year and that's driven by markdown activity to work through and normalize our supply. Got it. … Women's of course will continue to be a high priority. 5 Biggest Takeaways From Nike's 2020 Q1 Earnings Call The results are in. Thanks very much for all of the color on the call. You'll find the appropriate reconciliations in our press release, which was issued about an hour ago at our website investors.nike.com. Color on that would be helpful. That doesn't give us much time to manage any of the levers within our overall portfolio. 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. 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