Nike FY 4Q13 Earnings Call Notes

This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings. The quotes are generally pieces of information that I find interesting or helpful to understanding the company, industry or economy and are not meant to provide summaries of the full content of the call. Other posts in this series can be found by clicking here. Full transcripts can be found at Seeking Alpha.

“For fiscal year 2013, we grew in every geography except Greater China, and across all of our key categories.”

“The MVP for the quarter and the year really had to be North America.”

“At Nike when profits grow faster than revenue and revenue grows faster than inventory, we call that the financial Triple Crown.”

“Our job is to build strong consumer connections and to increase market capacity to fuel long-term growth. Delivering innovative product, creating differentiation in the marketplace and improving profitability and productivity at retail, are the keys to our long term success in the China marketplace.”

“at Nike, we have a list of 11 guiding principles we call our maxims. The maxims define our approach to the business as we strive to reach Nike’s full potential. I think there are three maxims that characterize our FY’13 performance…The first is, Nike is a company. More specifically, Nike is a growth company made up of a broad portfolio of businesses…The second maxim states, we are on the offense, always…Today’s final maxim is a personal favorite of mine, master the fundamentals.”

“Well, as far as acceleration, yes, we have definitely seen some fairly significant increases in wage rates in a couple of countries. I think the one in Indonesia certainly was pretty well publicized.”

“there has never been more opportunity to innovate than there is today. And, with that comps, it’s not just more. It’s better. So, we need to edit against that incredible list of opportunities and make sure that we are investing in things that we think we can leverage for the greatest success to fuel growth, improve performance, sustainability, et cetera.”

CEO: “last week we announced strategic management changes for our organization. Chief among them is the decision by Charlie Denson to move on from his role with Nike. Yes, he leaves some huge shoes to fill but luckily that’s the business we are in, filling shoes…what I know about Charlie is that he is a brilliant and affable man, easy to respect and easy to like, obsessed with sports and the athlete and he has incredible passion for the brand and that’s all a great combination…Charlie is more than a colleague, He’s a friend, a mentor”

CFO: “As CFO of Nike, I could not have had a better partner. Charlie understands how all of the dimensions and aspects of our business fit together and he knows how to work the levers. And, while he claims he is not an expert on financial management, he has the most important skill of all. He knows how to create value for our shareholders and has done so year-after-year. That’s a great legacy, but probably not the most important one. I think Charlie’s greatest legacy will be the people he’s developed and inspired over the years and I count myself among them.”

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