Nike (NKE) Q4 2016 Earnings Call Transcript

posted in: Earnings Call, Notes | 0

Nike (NKE) CEO Mark Parker said the company is benefitting from the secular trend of individuals buying more athletic related apparel

“But NIKE wins because we just don’t adapt to these forces, we create and shape the change. We lead. For example, we are all seeing the growing power of sports. Participation is increasing all over the world. People are leading healthier, more active lives. At the same time, the rise in sport culture is bringing fitness and style together. Profoundly influencing what we all wear everyday.”
 
Nike (NKE) President Trevor Edwards called out Western Europe as a geographical area of particular strength 
“Now let’s turn to Western Europe where we’ve seen broad based demand with growth of 19% in the quarter and 14% for the year. Growth in the quarter and throughout the year was fueled by our continued efforts to transform the marketplace along the category offense. In Q4, all territories grew double digits and all key categories grew led by Sportswear, Global Football, Jordan Brand and Running.”

Nike (NKE) CFO Andy Campion emphasized the strength of the brand
“NIKE is the number rated brand by consumers in every major market and every key city around the world. From China to Europe and of course here in North America. That is perhaps the most important metric that I’ll speak to you on this call. Because it is bestowed upon us by the consumers that we serve and it must be earned. NIKE Brand leadership with consumers is fueled by our authentic and relentless obsession with bringing inspiration and innovation to every athlete in the world.”
Nike (NKE) CFO Andy Campion said demand for athletic wear it outperforming
“Globally consumer demand for athletic footwear and apparel is outpacing broader consumption. At the same time, the retail landscape is rapidly evolving.”
Nike (NKE) CFO Andy Campion said Brazil is still economically challenged
“Revenue in Brazil declined due to the challenging macroeconomic environment, however, our brand is strong in Brazil, our inventories are healthy and we continue to take share.”