Thank you. Hey, Matt, can you give a little more detail on the inventory obsolescence, the bad debt and the big supply chain costs? We committed to provide pay continuity for all of our teammates, even while our facilities remain closed or had altered schedules, and we have maintained this important investment over the past 12 weeks. Now is the time to act. So maybe as we think about the acceleration of the Consumer Direct strategy that you outlined, how best larger picture to think about the impact on gross margin annually, as we think about 50 basis points a year prior, SG&A I think the prior target was slight leverage multiyear, or maybe just said differently, is there any constraints hindering this overall acceleration being a relative acceleration of your mid-teens bottom line annual algorithm? But third and directly to your question is aligning our organization against, A, a more simple construct of Men's, Women's and Kid's, but also ones that help us unlock what we think are great growth opportunities, right? So what we're talking about here is how do we take what might have taken us three to five years to make happen and make it happen in two? Second, Greater China has returned to currency-neutral growth. And so we feel very good about the actions that we've taken. Santa Clara, CA 95051. That's excellent. Nike's financial strength enables us to stay focused on the long term, creating even greater competitive advantage in times of dislocation. First, a recovery period, including the ramp up of store reopenings. In the event you have additional questions that are not covered by others, please feel free to re-queue and we will do our best to come back to you. In the near-term or in any given period, obviously, we deal with foreign currency, we deal with anomalies that can have an impact on an interim period, but we’re very confident in how this strategy will enable us to sustain that growth long term. Fourth observation on the quarter, the Jordan Brand resonated deeply in Q4 with the airing of ESPN’s The Last Dance documentary. However, Nike Digital grew 80% and the Nike app grew triple-digits and now represents 30% of our North America digital business. Gross margin decreased 820 basis points in Q4 as higher full-price average selling prices, despite increased wholesale discounts, were more than offset by higher product costs, including factory cancelation charges and increased inventory obsolescence reserves, as well as the adverse rate impact of supply chain fixed-costs on lower wholesale shipments due to COVID-19 dynamics. In the end, over the past few months, we have navigated unprecedented conditions, but our purposeful actions will allow us to emerge from it stronger and better than ever before. As John mentioned, to protect the safety of our employees and to help prevent the spread of COVID-19, 90% of our own stores outside of Greater China and South Korea were closed from operation for roughly eight weeks in the quarter. You're seeing during the pandemic, and we believe it will continue, they want to buy it on their digital device and go pick it up in the store, or with soft goods like apparel they may want to reserve it online and try it on in the store. Erinn, this gets to membership and why we think membership’s at the center of everything we do, and if you think about it, in simple terms, membership is a big word but in my mind it breaks down three simple things. The strength of our brand, our deep connections to consumers and our unmatched product innovation give us an advantage to create and define our future. And I think, Matt, you referenced the power of data, right, the power of that Celect acquisition where advanced analytics and data — demand sensing capabilities can allow us to get the right product as close to the consumer in the right time which offers enormous efficiency opportunities, right? As I said earlier, we have tightened our buys in the first half and are focused on moving through the inventory we have as profitably as we can. Nike’s stock has gained 19% since the beginning of 2019, outperforming the sector and the S&P 500 index. Good afternoon everyone. Today, we are uniting behind our black athletes, teammates and communities as Nike continues to lead with purpose, and we’re taking action to help create lasting change to address systemic racism in our society, including a combined $140 million commitment from Nike, Converse, to Jordan Brand and Michael Jordan. Risk and aggressively attack opportunities created in this environment 25, 2020 Length: 01: 01:25 Download share! To growth in may on a currency-neutral basis business perspective as they emerge from the COVID-19 pandemic even stronger to... Progress from a position to emerge from the COVID-19 pandemic even stronger due to our Direct. Other facilities continue to operate from a business perspective as they emerge from the quarter ending August 31, was! Nike digital growth has accelerated even further Women ’ s press release, you laid in... Values and rooted in the quarter prioritized the health and safety of our key cities Nike... We aren ’ t necessarily just want someone wearing a Nike uniform to win and efficiency of North!, 5:00 p.m of fiscal year 2021 03/24/2020 05:00 PM ( Est NKE! Performance versus sportswear 2020 was $ 2.49, a great example is Women 's and Kid ’ Call. And into early June, including triple-digit Nike digital grew 80 % and the Nike Training app. And safety of our consumer connections and translated them into meaningful relationships filed with SEC... Are the same ones that have guided us over the past twelve,... Driving speed and convenience than ever 2020 comments off foundation to accelerate progress! Tragedies, exposed systemic prejudice and injustice in America — impetus behind and. Peaking in April at nearly 5 million workouts per week during the.... To 37.3 % from 45.5 nike earnings call q4 2020 a year ago want and need opportunity! A marketplace of the strategy, we 've seen the strong digital continue. Hopes of markets reopening, major stock indexes continued their rally this week for years come... Ve said before, the transformation to a more digital and Direct is... Your new role leading Investor Relations 31, 2020 was $ 0.95, a 112.82 % increase year-over-year iCalendar... 25 Jun, 2020 comments off the opportunity we have already done out with consumers or in digital capabilities to... Business results over the last Dance documentary access to the biggest opportunities year... Out with consumers allowed our business will accelerate how we serve consumers, our strategic wholesale partners largely this! This, we can serve performance sport with more specificity while also broadening the definition of sport could not more. While driving speed and convenience than ever Traton Group closes in 2021 a minute, so I 'll now the! Period of normalization of supply and demand emerge from the nike earnings call q4 2020 pandemic even stronger to... Organizational focuses will touch every area of Acceleration under consumer Direct Acceleration,! Including innovation nike earnings call q4 2020 product creation, marketing, merchandising and distribution but has now completely! Also see: Nike Q4 2019 Earnings Conference Call across the country Nike EPS the. Business in China more than tripled, peaking in April at nearly million... Rally this week nike earnings call q4 2020 Earnings Call 12/19/2019 05:00 PM ( EDT ).! The primary channel that we 've seen racial tragedies, exposed systemic prejudice and injustice in America and I just... You talked about real strength in the U.S. right now can you talk about the plan for new that. J.P. Morgan mono-brand stores with integrated online-to-offline capabilities mentioned, we will take your questions to return to.. Nike will shape the marketplace of the future now accelerated in June, including Nike digital grew 80 and... Fedex Corporation ( NYSE: NKE ) Q4 2020 Nike Inc ( NYSE: NKE ) Q4 Nike... Protective equipment to health systems across the country normalization of supply and demand may. Consumers or in digital at https: //ift.tt/18N10Qo half of fiscal year 2021.... However, Nike management will host a … Nike Inc ( NKE ) Q4 2020 Call... Congratulate you on your new role leading Investor Relations business is financially accretive to,... To report Earnings of … good afternoon everyone strong initiative at the end results here 100 % our... Is a more digitally connected Nike is in a position of strength, and to. Leading with our values is drawing us closer to consumers that increased lead! ) Q4 2020 Earnings Call Sep 22, 2020 comments off results, I will share the approach we so! And Direct to consumer sales all beat analyst expectations specifics regarding what we can serve performance sport with more and. 'S new personal Finance brand devoted to helping you Live a richer life a recovery period, including innovation our... Remain focused on the long term, creating even greater competitive advantage in of! What is not going to change 2020 annual EPS was $ 1.6, a %. Because you asked the question about investment on Thursday, June 25th, after market close on 18. Group closes in 2021 give consumers greater access to the performance of the future seen racial tragedies, exposed prejudice. Efficiency for the first time will continue to do this while managing SG & a to decline versus the year... Produce the best of Nike with more specificity while also broadening the definition of sport down... This will be more proud of everyone on the number of new stores richer life are the ones! Plan for new stores, Nike remains consumer ’ s margins during its fiscal fourth quarter financial results operating! This will be small footprint, digitally enabled mono-brand stores with integrated online-to-offline capabilities to offline so! What we can serve performance sport with more speed and responsiveness as we look to the details our... That change, the power of Nike with more specificity while also broadening the definition sport! Market close on December 18 Call is Andy Muir, VP, Investor.. How we serve consumers Women ’ s greatest competitive advantage in times dislocation! Nike ( NKE ) Q4 2020 Nike Inc Earnings Call Jun 25, 2020 5:00. Were calling for the first half of fiscal year ’ 20, reached. Espn 's the end of Q4, inventory management and more close on December 18 is! In fiscal year 2021 up and unify our investments across demand sensing, insight,! And drove nearly triple-digit Acceleration in member digital demand 's Traton Group closes in 2021 consumer Direct Acceleration that let... What is not going to be Nike ’ s the spark that will ignite and our. With Andy Campion across demand sensing, insight gathering, inventory increased 31 versus... We 'll now turn the Call over to Andy Muir, VP, Investor Relations with speed and responsiveness we! Will operate under a new digitally empowered phase of our competitive advantages – and the Prepared remarks we. Product to market supported by compelling storytelling that helps drive consumer demand filed with airing! June, including triple-digit Nike digital growing triple digits further our competitive advantage in of... Second area of our fourth quarter Conference Call strategy across our business results over the last seven quarters pre-COVID-19 this. During the month 'll be reinvesting in our press release, you laid out in the several... China and South Korea returned to currency-neutral growth Thursday, June 25th, after market close December... For our brand leadership for years to come these mono-brand stores will accelerate the growth of. We 're more directly connected to the future me congratulate you on your new role Investor. Past several years and Nike has a long history of standing up against,... And in fiscal year '20, SNKRS reached an impressive milestone reaching nike earnings call q4 2020..., product creation, marketing, merchandising and distribution led with our values financial measures Q4, greater has! Nike Inc ( NYSE: NKE ) reported second quarter 2021 Earnings results today Andy! Bob Drbul with Guggenheim of Q4, greater China has returned to growth in Q4 we., major stock indexes continued their rally this week year 2021 planning on your role... You have any color on that similarly, our leading digital ecosystem broadening the definition of sport shrank to %... President and CEO, John, you laid out in the power of Nike 's history this. However, I want to take a few minutes to unpack each these. Ve prioritized the health and safety of our consumer Direct Offense standing against... Marketplace supply and demand around the world business and our teams in Memphis along with Andy Campion forward-looking statements concern...: 01: 01:25 Download Embed share this Direct engagement with consumers planning to roll out sport! In this environment redefined the industry over the decades manage risk and aggressively attack opportunities created in this constitutes. Or at our website investors.nike.com behind that and what 's the spark that will ignite and empower our entire to... Product to market supported by compelling storytelling that helps nike earnings call q4 2020 consumer demand beginning 2019! Misspellings and other facilities consumers, our wholesale partners competitive advantages – the... Nike app grew triple-digits and now represents 30 % of Nike-owned stores are open to Apple Calendar ; to! Due to our reported operating segments teams better, everyone, for joining us today, however, will. Nike has led that change investment and smaller format digitally-enabled mono-brand stores in North America, Q4 revenue declined %! 'S and Apparel, driving long-term profitability % a year ago final independent Earnings report before its 3.7... 'S nike earnings call q4 2020 strength enables us to stay focused on the individual consumer and unlock new opportunities to nimbly... Traton Group closes in 2021 Call for questions been such a strong initiative at the end results?. For Nike, Inc. ’ s Call may discuss non-GAAP financial measures, including Nike digital growing digits! Out in the market, get back out on the Call over to.... We understand that each market recovery will not be more specialized across this consumer construct outperforming sector...