Nike FY 2Q16 Earnings Call Notes

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http://seekingalpha.com/insight/earnings-center/article/3772726-nikes-nke-ceo-mark-parker-on-q2-2016-results-earnings-call-transcript

Mark Parker

China had an incredible quarter

“in China specifically, as you recall, we spent time resetting the marketplace and we are now seeing the results of that reset really take place. They had an incredible quarter. I was actually just recently there. We are seeing just great growth across the Sportswear, the Running, the Basketball business, the dotcom business is doing exceptionally well.”

Still have excess inventory from West Coast port shutdown

“Overall, the excess inventory in North America is really current fresh product and the largest portion of that really stems from the residual impact of the West Coast port congestion earlier this year. And it really consists of basically part of that was delayed. We proactively delayed some products in favor of priority products that we felt that would actually work well in the marketplace.’

Excess inventory should be liquidated at factory stores

“we expect that more of our inventory would be liquidated to our factory stores. Like we have said, we have got a robust network and we continue to feel very positive about the demand in the marketplace for the brand. And so for those consumers looking for a value occasion, we think we are providing great value at this – particularly with the recency of some of these products.”