Nike jumped as much as 12% on Wednesday after the sportswear giant trounced expectations for fiscal first-quarter earnings and sales. 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. Fourth and finally, digital is fueling how we create the future of retail. 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 got over a 1 billion units at 99.99% readability, which enables us to see our inventory now across all of our factory stores. This is just one reflection of how digitally enabled our future of retail is and how membership is a critical differentiator. Est 0.067 Q4 2020 Nike Inc Earnings Call 06/25/2020 05:00 PM (EDT) NKE. In North America specifically, Q1 revenue declined 1% on a currency neutral basis and EBIT increased 18% on a reported basis. The consumer energy around this broader campaign is testimony to NIKE’s brand appeal at a time when so much is going on in the world. And then beyond that, where I think we still have huge opportunity is we now have one integrated technology roadmap and we’re applying that across our entire company end-to-end. 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. Hello, everyone, and thank you for joining us today to discuss NIKE, Inc.’s fiscal 2021 first quarter results. 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. Sure, Omar. And we’re continuing to execute on the incredible opportunity we see in women’s apparel. Is it an ever lower customer acquisition cost? These strengths, coupled with our digital acceleration, are unlocking NIKE’s long-term market potential.”**. And third, our consumer-led digital transformation is clearly a catalyst for long-term revenue and earnings growth. We also push what’s possible in sport as seen in the latest launch of our NIKE NEXT% footwear platform. 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: 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. And so, in this world where consumers want a seamless digital and physical experience, they want to know who they are, they want consistent premium modern experiences, the North America retail market today is furthest away from that. [Operator Instructions] Our first question is from Bob Drbul with Guggenheim Securities. 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. And maybe Matt, if you could just — a little bit more around — you gave some commentary for the full year, but maybe just the drivers of that performance for the remainder of the year would be very helpful. 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. Apparel in EMEA grew 11% on a currency neutral basis, led by the performance categories of running, training, basketball and global football, which featured our biggest club launch ever with Liverpool FC. Speaker 1: Good afternoon, everyone. We will continue to both accelerate investment against our digital transformation and prudently manage other spending. Nike (NKE) came out with quarterly earnings of $0.95 per share, beating the Zacks Consensus Estimate of $0.48 per share. This is down from their earlier estimate of $0.56 for that quarter. The stock went up almost 9% due to impressive earnings beats. 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. 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. We will achieve this level of service at a lower fulfillment cost over time. Is it more efficient fulfillment of orders or scale, any of those? 22 mins When Its Merger With EV Maker Canoo Closes, HCAC Stock Will Fly InvestorPlace 24 mins Dollar Thumped Seeking Alpha First quarter reported revenues were $10.6 billion, down 1 percent on a reported basis and flat to prior year on a currency-neutral basis*, NIKE Direct sales were $3.7 billion, up 12 percent on a reported basis, and up 13 percent on a currency-neutral basis, with growth across all geographies, NIKE Brand digital sales increased 82 percent, or 83 percent on a currency-neutral basis, with double-digit increases across North America, Greater China, and APLA and triple-digit growth in EMEA, Diluted earnings per share for the quarter was $0.95, up 10 percent, Inventory rose 15 percent versus prior year but decreased 9 percent versus prior quarter, “Our results this quarter continue to demonstrate NIKE’s full competitive advantage, as we strengthen our position in the midst of disruption,” said John Donahoe, President and CEO, NIKE, Inc. “In this dynamic environment, no one can match our pace of launching innovative product and our Brand’s deep connection to consumers. As we look ahead to Q2, Bob, our margin will continue to be a function of supply and demand management because our top priority is to normalize inventory by the end of the second quarter. Nike shares soared 13% in extended trading Tuesday as the company reported an 82% increase in online sales and offered up an outlook that calls for demand to grow through the holidays.The company has used the coronavirus pandemic as an opportunity to accelerate its digital business, and its women's apparel division grew nearly 200%. By the way, that’s continuous. Q1 2021 Nike, Inc. Earnings Conference call 09/22/2020 05:00 PM (EDT) NKE. And so, those two factors in particular were large drivers of gross margin performance in the quarter. 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. We’re getting stronger in the places that matter most. Our teams have navigated with agility and focus to recalibrate supply and demand, to increase digital distribution capacity, to secure liquidity, and to tightly manage costs, all while ensuring the health and safety of our employees and consumers. In the report, the footwear giant also shared its sales in China rose by 6% during the last period, however, sales were down by 2% in North America. Your line is open. BEAVERTON, Ore., Sept. 22, 2020 — NIKE, Inc. (NYSE:NKE) today reported fiscal 2021 financial results for its first quarter ended August 31, 2020. 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. Thanks very much and nice quarter guys. Nike (NKE) Q1 2020 Earnings Preview: North America, ... Nike’s Q1 2020 revenues are projected to jump 5% to hit $10.45 billion, ... with 2021 expected to come in 8.4% higher at $45.70 billion. Thank you, John, and hello to everyone on the call. 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. Prior to the temporary suspension of the share repurchase program, a total of 45.2 million shares had been repurchased for approximately $4.0 billion, resulting in approximately $11.0 billion in remaining capacity under the 2018 share repurchase program. “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.”**. This is significant for us as it speaks to the increasing consumer adoption of our apps. I’m wondering, if you can just cover some of the key unlocks that you visualize or that you envision happening over the next few years that will basically allow that digital operating margin to track higher over time? Leading today’s call is Andy Muir, VP, Investor Relations. This quarter, we turned on machine learning on search and a little bit of improvement drove greater conversion. 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. And while we are sharing with you our perspectives on the opportunities that we see, as we look towards the future, the reality is that this environment right now is quite uncertain. Welcome to NIKE, Inc.’s Fiscal 2021 First Quarter Conference Call. In the first quarter, the Company paid dividends of $384 million to shareholders, up 11 percent from the prior year. Earnings per share reached $0.95, more than twice the $0.46 expectation. All in all, from the cultural residents of our brand to our expansion of what sport can mean, Q1 was a quarter that showed our relentless focus on deepening connections with our consumers matters. So, on the financial algorithm and as we think through the accelerated shift to digital, and I think you had said within the guardrails of SG&A that you’ve outlined, are there any offsetting headwinds constraining your ability to potentially outpace your outlined high single-digit top line and mid-teens earnings growth rates as we think moving forward? All-in-all, Bob, that just nets to about a flat versus prior year. Despite the uncertainty regarding the impacts of the coronavirus outbreak, the company updated its guidance for fiscal 2021 based on the robust first-quarter results. And given where things are sitting in the pandemic at this point in time, we were able to leverage the inventory visibility in order to be able to take advantage of some of the — take advantage of the demand that we had across the marketplace and across our retail stores. This presentation may contain “forward-looking” statements within the meaning of Section 27A of the Securities Act … We scaled ship from store capabilities in North America’s NIKE brand in-line stores, which now represents over 20% of revenue in enabled doors. Stocks. And this is evident by our new and innovative retail concepts amplified by an elevated O2O consumer journey. The results was high single-digit growth in differentiated wholesale, offset by a decline of over 20% in undifferentiated wholesale, all with a higher full price realization versus the prior year. Nike (NKE) delivered earnings and revenue surprises of 97.92% and 15.49%, respectively, for the quarter ended August 2020. 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. EMEA also continues to lead globally with our Express Lane offense, maximizing supply availability and actively managing inventory, while capturing emerging trends. First, strong digital growth and increasing member engagement. Good afternoon, everyone. NIKE, Inc. (NYSE: NKE) Q1 2021 Results Earnings Conference Call September 22, 2020 5:00 PM ET. Coupled with the popularity, we saw for VaporMax 2020, we are seeing real consumer appetite for sustainability, especially with our youngest consumers. And even in the midst of disruption, we are on the offense. Wall Street analysts had projected earnings per share of $0.47 on revenue of $9.14 billion, according to Refinitiv estimates. Act 0.78 Est 0.59 Q3 2020 Nike Inc Earnings Call 03/24/2020 05:00 PM (EDT) NKE. I think that obviously safety is paramount. These capabilities will be enhanced by our RFID investments, highlighting dramatic improvement we are making in our O2O service performance. I’ll go a little deeper in one, just as an example. 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. As we accelerate the pace of investment, our technology foundation will enable us to unlock operating efficiency through automation and increased productivity across the organization. Categories Consumer, Earnings Call Transcripts, Nike Inc. (NYSE: NKE) Q1 2021 earnings call dated Sep. 22, 2020, Andy Muir — Vice President of Investor Relations, John J. Donahoe II — President and Chief Executive Officer, Matthew Friend — Executive Vice President and Chief Financial Officer, Robert Drbul — Guggenheim Securities LLC — Analyst, Kimberly Greenberger — Morgan Stanley — Analyst, Michael Binetti — Credit Suisse — Analyst. • First quarter reported revenues were $10.6 billion, down 1 percent on a reported basis and flat This summer, we also released a training shoe, the Air Zoom Tempo NEXT%, bringing the measurable benefit of NEXT% to runners focused on pace and endurance. 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. As John said earlier, we know that digital is the new normal. The accelerated consumer shift toward digital is here to stay; the definition of sport to include all facets of health, wellness and fitness and it’s the deeply connected authentic brands with scale that will win. Nike (NKE) reports fiscal Q1 2021 earnings and revenue conquer . Next question is from Omar Saad with Evercore ISI. Sure, Bob. This is the first quarter since the start of the pandemic, where our retail was essentially opened. Our athletes are doing the same. 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. Nike Inc. (NYSE: NKE) Q1 2021 earnings call dated Sep. 22, 2020 Corporate Participants: Andy Muir -- Vice President of Investor Relations John J. Donahoe II NIKE’s digital transformation strategy is not easily replicated. Thanks for the question. And so, we completely embrace balancing safety, but also return to sport. In challenging times, we know how to drive meaningful connections with our consumers. Nike beat analysts' revenue expectations for its first fiscal quarter by more than $1 billion Tuesday, signaling the sportswear giant is making a healthy comeback from the pandemic. Nike (NKE) reports Q2 fiscal 2021 earnings, sales beat December 20, 2020 Sam khawaja 0 Comments Nike on Friday reported quarterly sales and earnings that topped analysts’ estimates, driven by triple-digit growth online in North America and strong demand for its … The second piece is also kind of connected to data, which is, where do we place our inventory and how do we flow it, so that we can be closer to the consumer and ultimately lower our fulfillment costs. In Q1, we saw an all-time high of the percentage of our members working out on The Nike Training Club app, with more than 50% of our members worldwide starting to work out in Q1. Further, as we grow digital engagement and we retain a higher proportion of engaged members with increased buying frequency, we will be lowering customer acquisition costs, increasing our return on ad spend and changing the shape of our demand creation investment. Does that continue and does it cascade down to college and high school and youth? For those who want to reference today’s press release, you’ll find it at http://investors.nike.com. NIKE, Inc. management will host a conference call beginning at approximately 2:00 p.m. PT on September 22, 2020, to review fiscal first quarter results. Nike Inc. (NKW) held their Q1 FY21 earnings conference call on September 22, 2020. I wouldn’t trade our position with anyone. And so that’s how we’re looking at the first half of the year. At the same time, we are focused on amplifying our brand impact. And the more you get in a distributed environment and a less controlled environment, obviously, the more challenging that is. And so, in particular, the way we think about it is consumer-facing digital, right, demand sensing, little things. After a short-lived withdrawal, the Dow Jones Industrial Average, Darden Restaurants (NYSE: DRI) reported higher earnings for the second quarter of 2021, despite a decrease in sales amid historically low restaurant traffic due to the COVID-related restrictions. We’re investing in building this business for the long-term, and that’s where our focus is. And, of course, we remain focused on increasing member engagement to unlock value for both NIKE and our consumers. And all of these concepts are underpinned by digital. Presentation: Operator. References to constant dollar revenue are intended to provide context as to the performance of the business eliminating foreign exchange fluctuations. Our new store in Guangzhou is a data-powered store concept that curates a one-to-one personalized shopping journey. Following their prepared remarks, we will take your questions. Good afternoon, everyone. 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. I guess, just the first question that I have really is on — if you could maybe spend a little bit more time on the gross margin performance and can you just give us the buckets in the various units, is there any quantification around the promotions, the supply chain, the full price selling? 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 new regional service center near Los Angeles went live this month and uses predictive modeling to anticipate consumer demand and ensure the product our consumers want is available and will arrive within one to two days. With the first quarter now complete, I will update our full year financial outlook. Great, thank you so much. Following the news release, NIKE management will host a conference call beginning at 2:00 p.m. PT to review results. As I reflect on the first quarter, there are three key strategic and financial themes that stand out. The NIKE and Jordan brands are stronger than ever, delivering historic records of engagement through nearly 5 billion social media impressions just this quarter. Hey, guys. Our gross margin outlook will continue to be a function of prioritizing a return to normalized inventory levels by the end of Q2. * See additional information in the accompanying Divisional Revenues table regarding this non-GAAP financial measure. That said, having had a technology background, I feel like there is so much opportunity remaining that we’re still just scratching the surface of what’s possible. The surge accelerated Nike's plans to … Contents: Prepared Remarks; Questions and Answers ; Call Participants; Prepared Remarks: … We saw owned digital market share gains across both the US and key countries in EMEA, which gives us confidence in our ability to sustain and to grow our digital penetration even as physical retail traffic continues to recover. 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 towards even greater growth. Yes, Michael. NIKE Direct grew over 25%, with over 100% digital growth, driven by lifestyle products as the consumer focus on comfort continues. Personally, one of the things I am most thrilled about is the return to organized sport. Thanks. Nike Shares Soar To Record High As Digital Sales Surge Leads Q1 Earnings Beat. Next question is from Jim Duffy with Stifel. 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. Participants may also make references to other non-public financial and statistical information and non-GAAP financial measures. Most notably during the pandemic, we’ve seen an acceleration of share gains in US women’s and apparel, two areas of strategic focus. Sustainability will continue to be a key aspect of our innovation agenda going forward. No. We are tightly buying inventory and are focused on ensuring the long-term health of all of our brands and our key product franchises. This transcript is provided as is without express or implied warranties of any kind. We can navigate. And while we doubled down on the strategic capabilities required to fuel our digital acceleration, we are simultaneously driving a sharper prioritization and sequencing of our investments. And the most obvious one right now is just the pandemic and the impact it has on consumer demand and consumption in the near-term. We are scaling robotics and automation in our logistics operations, accelerating digital throughput and cutting order cycle times by up to 50%. As always, it starts with product innovation. We are reducing excess inventory at lower promotional levels relative to the overall marketplace, highlighting the strength of our brand and the value of our key product franchises, and we ended Q1 in a net cash position, generating positive free cash flow and increasing our liquidity to over $13 billion. Our first quarter revenue performance was impacted by strong NIKE Brand digital growth of 82 percent, offset by lower revenue in our wholesale business and NIKE-owned stores. And as I’ve said before, these are times when the strong can get stronger, and I’m energized by our incredible potential. Regardless of where they’re shopping, consumers want what they want, when they want, how they want it. With our breadth and depth, no one has the advantage in this space that NIKE has to directly connect with consumers. Safe Harbor Certain statements contained in this presentation are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995 . Second, in a normalized period, we earn roughly 10 points higher gross margin rate on our digital revenue versus wholesale. Your line is open. Through the power of sport, we are creating hope and inspiration at a time when the world needs it. Nike (NYSE: NKE) is scheduled to announce Q1 earnings results on Tuesday, September 22nd, after market close. Got you. Your line is open. And we believe that will continue to — that will be a driver as well of continued gross margin expansion. 15 hours Scholastic Corporation 2021 Q2 – Results – Earnings Call Presentation Seeking Alpha 16 hours Worthington Industries, Inc. (WOR) CEO Andy Rose on Q2 2021 Results – Earnings Call Transcript Seeking Alpha 17 hours Jabil Inc. (JBL) Q1 2021 Earnings Call Transcript – … NIKE has a strong track record of investing to fuel growth and consistently increasing returns to shareholders including 18 consecutive years of increasing dividend payouts. Coach, as many of us called him, was a beloved member of the NIKE family, having served on our Board of Directors for over 30 years. Therefore, each market recovery will not be linear and the comparisons with prior year will become increasingly less intuitive. 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. While we strive to produce the best transcripts, it may contain misspellings and other inaccuracies. Greater China, EMEA, Japan and South Korea have already returned to growth. 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. And we expect Q2 will probably be more promotional than what we saw in Q1 because of holiday, the seasonal consumer moments like 11.11 in China, and then this year, we’ve got Cyber Monday in Q2, whereas last year it slipped into Q3 and we also are seeing despite our strong performance a lot of inventory, still in the marketplace. NIKE Inc. NKE swings to post better-than-expected top and bottom lines for first-quarter fiscal 2021 on robust growth in digital business despite soft retail traffic and wholesale revenues. We now have 100% of our footwear, as I think we’ve told you before, and 75% of our apparel tag. We had many product highlights this quarter. 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