Nike FY 3Q17 Earnings Call Notes

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Mark Parker – President and CEO

Digital is the foundation fo the shopping experience

“The consumer has decided digital isn’t a just part of the shopping experience. Digital is the foundation of it. This and other factors have shifted consumer patterns, especially in North America, impacting traffic, the economics of brick-and-mortar retail and is driving a more promotional environment in the near term.”

2x increases in innovation, speed and direct contact

“To see consumers rising expectations, we’re driving fundamental change in three core areas of our business, through the innovation that inspires them, the supply chain that delivers it quickly and in the marketplace, where we connect personally, with consumers. And while we continue to see great success against all three areas, we committed to doubling our impact in each of them. We call it our triple double. So what do I mean by that? In products, we’re doubling our cadence and scale of innovation through performance and sports style. Throughout our supply chain, we are doubling our speed, from product insight to delivery to the consumer, and in the marketplace, we’re doubling our direct connections with consumers through digital membership and personalization. To win now and create the future, we’re obsessing these three areas, 2X innovation, 2X speed and 2X direct”

The retail landscape is not in a steady state

“The retail landscape is particularly in the U.S. is not – is in a steady state. I think that’s obvious, undergoing some significant shifts. And those shifts really create some big opportunities and some challenges at the same time. I think the important thing to point out is that these changes are really being driven by the consumer, and consumer demand at the same time remains quite strong. But we know that consumer expectations are quite high in terms of product, the type of product they want, the innovation, the style. They want the product fast, they want it easy, they want personal service. So these are all things that are driving some of these shifts in the marketplace. And that’s why we’re focused on doubling the output or the cadence of innovation or speed to market so we can be that much more responsive to consumer needs, deliver innovation more quickly, and then doubling our direct connection, to consumers in the marketplace, using or leveraging the power of digital.”