But on behalf of the entire NIKE family and sports fans around the world, we're going to miss seeing her play. You will find the appropriate reconciliations in our press release, which was issued about an hour ago or at our website, investors.nike.com. Meanwhile, NIKE dominated shoe and apparel counts at the Berlin and London marathons as Alphafly drove strong sell-through. Welcome to NIKE, Inc.'s Fiscal 2023 Third Quarter Conference Call. Discounted offers are only available to new members. There's never been a better time to be in the sport and wellness business, and I'm confident in our ability to not just stay at the front of the path but also to extend and expand our lead. As mentioned last quarter, we are taking a cautious near-term approach in Greater China, given the ongoing risks of COVID-related disruption. Matt Boss -- JPMorgan Chase and Company -- Analyst. And with our movement toward Direct, both Digital and our monobrand brand stores, as Matt has said, each quarter, there is a structural benefit to our margins. So, overall, our Q2 results give us confidence that we will deliver the year, and we remain on a path toward our long-term goals as well. We continue to deepen connections with Chinese consumers in locally relevant ways, from elevating the street dance community with hyperlocal product and storytelling to igniting youth basketball culture through the lens of the Chinese high school basketball league. Nike Looks Expensive; Some REITs Look Cheap, Cumulative Growth of a $10,000 Investment in Stock Advisor, Join Over Half a 1 Million Premium Members And Get More In-Depth Stock Guidance and Research, Copyright, Trademark and Patent Information. And what excites us even more is the energy and anticipation we're feeling for the innovative product that's next in the pipeline. Well, as I mentioned on the call, our inventory grew 44% this quarter, which was led by 65% growth in North America. Nike : Q3fy23 Earnings Call Unofficial Transcript The second quarter also compares to last year's record level of full price realization and includes headwinds from freight, logistics and other supply chain costs, as well as foreign exchange. To make the world smarter, happier, and richer. And I think the distinction here that we're trying to make is a distinction between footwear strength and seasonally appropriate product and innovation and late-arriving apparel that has been impacted from the factory closures a year ago, and some of the decisions made around what to continue to make and bring to market and then what's been impacted by transit times. Since fiscal '19, our digital business has nearly tripled to exceed $10 billion in revenue, representing 24% of total NIKE brand revenue in fiscal '22. First off, with regard to China. From a structural side, we have the same structural drivers that we've always had from a profitability perspective, and we continue to be focused on them. With strong brand momentum, improving deliveries and a robust innovation pipeline, we're acting now to set the stage for future seasons of sustainable profitable growth. Nike (NKE) Q2 2023 Earnings Call Transcript - MSN Forward's being introduced in hoodies and crewnecks for men and women that feature raw cut pockets, minimal seams and a modern silhouette. We created a football boot to match the moment. When we think about the way we're going to navigate the excess supply and liquidation relative to the way that we're trying to maintain a full-price marketplace for the new inventory that's flowing in, we're prioritizing the flow of new products to our strategic partners and to NIKE Direct. As you heard me say before, at NIKE, it all starts with product innovation. Image source: The Motley Fool. What's unique about LeBron 20 is that it's LeBron's first signature shoe to debut as a low top. NIKE, Inc. Reports Fiscal 2023 Third Quarter Results And then, as it relates to -- reduce on a dollar basis. Christina Falso 2 days ago Here's how Nike did in its second fiscal quarter compared with what Wall Street was anticipating, based on a survey of analysts by Refinitiv: Earnings per share: 85. And our partners are telling us that these engaged members are driving improved traffic conversion and mutual profitability for them as well. We think there's a lot of content that we can be bringing to those members. Our current headwinds, such as foreign exchange and inventory challenges, are transitory, but our tailwinds are structural, like the expanding definition of sport, the consumers' move toward digital, and the cultural shifts toward comfort and health and wellness. Your line is open. On China, as you know, we've got a very strong local team there, led by Angela Dong, and they're doing a remarkable job navigating through this dynamic situation with the temporary COVID closures. And we have a really clean experience across our apps and digitally, including nike.com. Good afternoon, everyone. In this current environment, our consumer demand stands out. Alphafly Next% sold out. SG&A grew 10% in Q2, primarily due to wage-related expenses, strategic technology investments, higher NIKE Direct costs, and increased demand-creation expenses. Maybe Matt, I'll just make one comment and then -- you're going to hear a key theme over and over to -- our highest priority is building our long-term competitive position. We're trying to predict year in and year out, given how dynamic it is. NIKE, Inc. Announces Fourth Quarter Fiscal 2023 Earnings and Conference We already showed strong improvement this quarter. For the second quarter specifically, we expect reported revenue to grow low double digits on strong consumer demand despite 900 basis points of foreign exchange headwinds. We created a first-of-its kind China-specific member journey with Tmall, which saw a significant uplift in new member recruitment and demand per member. So let's start with NIKE's strong brand and our connection to sport, which differentiates us all over the globe. Now this quarter, we delivered NIKE Digital's highest net revenue quarter ever. And so, we continue to be the No. NIKE Inc. NKE is slated to release second-quarter fiscal 2023 results on Dec 20. But -- but -- but those we do believe are -- are -- are recoverable. The quarter saw more than 30% currency-neutral growth in our North America, EMEA, and APLA geographies. For example, new membership tools we put in place last year in fiscal '22 that went live in Q1 create one-to-one connections at scale by delivering personalized consumer journeys and experiences which in turn drive first purchases and increased loyalty. And today, we're very excited to announce that we're now extending connected membership to EMEA with Zalando and JD Sports as increased opportunities for connected data and inventory make us even quicker and more precise in jointly serving the consumer. Volatility profiles based on trailing-three-year calculations of the standard deviation of service investment returns. 1 cool and favorite brand. This reflects approximately 150 basis points of annual impact from higher markdowns and higher off-price mix to liquidate elevated inventory, a second straight year of more than 100 basis points of headwinds from elevated freight and logistics costs, and foreign exchange pressure now a 70 basis point headwind on the full year. And finally in our marketplace strategy, we continue to build a compelling retail footprint with our own brick-and-mortar fleet. Curious what your -- curious what the promotional levels look like in those markets. Information presented was current only as of the date of the conference call and may have subsequently changed materially. [Operator instructions] With that, we go to our first question this afternoon from Jim Duffy at Stifel. NIKE, Inc., headquartered in Beaverton, Oregon, is the world's leading designer, marketer and distributor of authentic athletic footwear, apparel, equipment and accessories for a wide variety of sports and fitness activities. In North America, apparel inventory units and apparel closeout units are both down mid-teens from the prior quarter. And when you look at the depth and breadth of our product portfolio and the way that we dimensionalize our products for the consumer, it's a competitive advantage for us that makes our brands stand apart relative to others. At the same time, we are closely monitoring an operating environment that continues to be disruptive. These trends give us confidence that we have a strong and loyal member foundation to drive digital growth ahead. We should expect to start to see some recovery in fiscal year '24. And so, we, again, talk in terms of transitional and structural. Converse, a wholly-owned NIKE, Inc. subsidiary brand, designs, markets and distributes athletic lifestyle footwear, apparel and accessories. The leading sports apparel retailer is likely to have witnessed top-line growth in the fiscal second quarter,. And those statements are subject to certain risks and uncertainties that could cause actual results to differ materially. I know there's been a lot of questions on inventory already. And secondly, because we're seeing current season product becoming available earlier, we saw a stronger pull of shipments from Q3 into Q2 into -- into our revenue growth this quarter. Our Q2 growth was broad based across our brands, channels, and geographies. Running delivered solid growth with strong consumer response to the Pegasus 39, Invincible 2 and the Peg Trail 4. And so, I would say we're still in the relative early innings of what we believe we can do on the membership -- on the membership front. If you -- if you recall, we've been navigating over the past two years, it's been pretty significant and volatile, and it continues to increase our confidence levels. And so, Matt will talk a little bit about the assumptions we have built in to our second half. Wednesday's top Wall Street analyst calls includes Nvidia - CNBC Congrats on a great quarter, I know is a lot of heavy lifting. So, yes, promotional activity is higher than it was in the prior year. Full-price realization remains strong after strategic pricing increases, especially for our top innovation products in our largest footwear franchises. Now, I will turn to our financial outlook. We'll move next now to Abbie Zvejnieks at Piper Sandler. We will give more detailed guidance on that in our normal course. Second-quarter reported gross margins declined 300 basis points to 42.9%, primarily due to higher markdowns, mainly in North America, unfavorable changes in net foreign currency exchange rates, elevated freight and logistics costs, and increased product input costs, partially offset by strategic pricing actions. It would seem so based on some of the inventory comments you gave on the U.S. Consumer demand for our brands drove double-digit currency-neutral revenue growth across NIKE, Jordan, and Converse. Performance fueled strong growth in men's with the launch of Pegasus, Infinity and Invincible in running and the Mercurial in global football. And I would just say -- I would add that when we referenced that China grew ahead of our plan, 13% decline was better than we were anticipating in light of the fact that our team was planning for disruption, given the episodic closures by city that are occurring. And we now expect our effective tax rate to be in the high teens range, primarily due to decreased benefits from stock-based compensation. More importantly, our results speak to how we've leveraged our competitive advantages, which include a relentless innovation pipeline, unmatched brands, and deep consumer connections to build relative strength and stay ahead of competition. It's hard for us to track inventory once it leaves your books. Thank you, Mr. Nike (NKE) Q3 earnings 2023 - CNBC Now I'll turn to our updated financial outlook for fiscal '23. Welcome to NIKE, Inc.'s Fiscal 2023 Second Quarter Conference Call. Now, let's review the operating segment results. Please refer to NIKE's earnings press release or NIKE's website, investors.nike.com, for comparable GAAP measures and quantitative reconciliations. I think on your second question on pockets of excess inventory, I think that was a more broad question. Good afternoon. Individuals can also visit http://news.nike.com and follow @NIKE. Serena, on behalf of everyone at NIKE, thank you. 3 Passive Income Stocks to Hold for the Next 20 Years. FY 2023 Q1 Earnings Release Conference Call Transcript. In North America, we captured market share with strong holiday results and positive consumer response to new assortments. A total refresh of our signature basketball line across brands. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. We also celebrated our most successful Mercurial launch ever and an unforgettable moment for women's sport at the European Championships, with our Never Settle, Never Done campaign driving over 450 million impressions. Driven by volatility in transit times in North America, strategic decisions to buy inventory for future seasons earlier and lower inventory levels due to last year's factory closures in Vietnam and Indonesia. Why? Today, we're creating more separation between us and our competition, thanks to the meaningful relationships we have with consumers and the continued success of our strategy. Paul Trussell I'm hoping that you can --. So I highlighted North America because that's obviously the geography where we've seen this most significant increase. I could not be more proud of their efforts. So, we expected that to normalize in this fiscal year and with where inventory is broadly across the marketplace, that the environment is definitely more promotional. BEAVERTON, Ore.-- (BUSINESS WIRE)-- NIKE, Inc. (NYSE: NKE) plans to release its second quarter fiscal 2023 financial results on Tuesday, December 20, 2022, at approximately 1:15 p.m. PT, following the close of regular stock market trading hours. Earnings per share: 79 cents vs. 55 cents expected Revenue: $12.39 billion vs. $11.47 billion expected The company's reported net income for the three-month period that ended Feb. 28 was $1.2. Factors Likely to Influence NIKE's (NKE) Earnings in Q2 - Yahoo Finance No other brand in the world can match our roster as we help them perform at their very best. As the world's largest sports apparel and footwear company, we are happy to set the pace in serving the consumer. 03/21/2023 BEAVERTON, Ore.-- (BUSINESS WIRE)-- NIKE, Inc. (NYSE:NKE) today reported fiscal 2023 financial results for its third quarter ended February 28, 2023. We delivered a strong quarter in Q2 with revenue growth of 17% on a reported basis, and 27% on a currency-neutral basis. There's no signs of any softness. Since last quarter, our brand momentum has accelerated into the holiday season. And -- and we also saw traffic impacts as the country navigates through this transition of its COVID policy. As I previously discussed, we started to increase promotional activity in the first quarter and expect the broader marketplace to be promotional at least through the end of the calendar year. And the results of the 11 on the holiday were quite strong, both versus what our plan was and versus competition. Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. We're driving momentum across key consumer and sport dimensions, including positive consumer response to the Pegasus 39, Invincible 2 and Infinity 3 in performance running, high sell-through and full price realization across key footwear franchises, such as Air Force 1, Dunk and the Air Max 270 and broad-based growth across men's, women's, kids and Jordan on improved inventory supply. The conference call will be broadcast live over the Internet and can be accessed at https://investors.nike.com. In addition, we have now transitioned our businesses in Argentina, Chile and Uruguay to a distributor model. And American football is now back. Returns as of 06/28/2023. The last thing I would probably just say, and I sort of alluded to it in my prepared remarks, but NIKE is at its best when we are able to bring together product, storytelling and a retail experience for the consumer. Second, we are making progress where we are focused most. In addition to our results, we're executing in the areas we spoke to 90 days ago as we take decisive action to clear excess inventory. You know, as we look at transit times continuing to improve, one of the things that gives -- gives us greater confidence is a more predictable flow of supply on normal lead times. In addition, participants may discuss non-GAAP financial measures, including references to constant dollar revenue. But we're focused on prioritizing healthy pull markets going into fiscal year '24. KeJuan Wilkins Thank you very much. and U/G to OW." Read more about this call here. In fact, more than 50% of store demand comes from members. Our Jordan brand delivered incredibly strong growth in the quarter, as well as our footwear business. Q2 revenue grew 34% on a currency-neutral basis, and EBIT grew 25% on a reported basis despite the transition of our circular territory to a distributor model. Our culture of innovation is fueled not just by what we make but also how we make it. With Gen Z member demand growing more than 25% versus last year on NIKE's digital platforms and the newly launched localized NIKE app already leading as the No. NIKE, Inc. (NYSE:NKE) Q3 2023 Earnings Call Transcript - Yahoo Finance Zegama created energy in trail-running, the sport's fastest-growing segment. Today, we have incredible momentum in key products and franchises across the spectrum of lifestyle and performance. And today, we're getting a true competitive boost from our investments in these new capabilities. Consumers continue to rate us their No. It starts with price value of our products and how we create value for consumers in the products that we make. NIKE, Inc. Announces First Quarter Fiscal 2023 Earnings and Conference Call Since fiscal '19, EMEA gross margins have expanded by more than 500 basis points, with NIKE Digital increasing its penetration from 7% to 20%, nearly tripling its share of EMEA NIKE Brand revenue. Jim Duffy -- Stifel Financial Corp. -- Analyst, Thank you. And globally, our holiday season momentum has continued through the first few weeks of December. And we got a very strong innovation pipeline that will still be coming hard and hard in Q2, Q3 and Q4. We anticipate gross margin to decline 150 bps to 43.5%. You know, we have a lot of empathy for the consumers in terms of what they're going through in that environment. Theyjust revealed what they believe are thetenbest stocksfor investors to buy right now and Nikewasn't one of them! We've been very focused on youth in China, the young consumer, both kids and Gen Z. So before discussing our first quarter financial results, let me provide a deeper view into the latest shifts we are seeing and the actions we are taking to manage our business for the long term. And as we turn toward NIKE's next 50 years, I have every confidence in the future this team will create. Before I turn the call over to Mr. Trussell, let me remind you that participants on this call will make forward-looking statements based on current expectations. Just talk about some of the assumptions regarding the macro. For those who want to reference today's press release, you'll find it at investors.nike.com. But as it relates to our performance this quarter and how we're planning for the second half of this year, we've obviously been monitoring the China marketplace very carefully given the COVID-related disruptions that we've been experiencing. Take care. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The conference call will be broadcast live via the Internet and can be accessed at http://investors.nike.com. We'll use digital a little bit in order to liquidate some of this excess apparel, and we'll use other partners in wholesale to liquidate it. Now let's review the operating segments. And as I mentioned repeatedly, it's consumer driven. The Motley Fool has positions in and recommends Nike. Does any of this change your pipeline of innovation? And like I said just before, the total annual impact we see as a transitory 150 basis point cost to effectively liquidate the inventory that we want to liquidate and serve the marketplace with the fresh holiday product and then looking forward that we see. We were able to liquidate more units than we planned, and we saw a higher full price realization in Greater China than we had planned. Before I turn the call over to Mr. Trussell, let me remind you that participants on . So that's -- but that's a factor that -- it's a little like inflation. And then, our innovation agenda is still going to continue full speed ahead. Last quarter, I highlighted another franchise in another sport getting an upgrade, the Mercurial, which added Zoom airbag to create NIKE's fastest football boot ever. And that's been true. Here are Tuesday's biggest analyst calls: Tesla, Micron, Roblox, Kellogg, Eli Lilly, Meta, Nike and more Published Tue, Jun 27 2023 8:16 AM EDT Updated 15 Min Ago Michael Bloom First quarter reported gross margin declined 220 basis points to 44.3%. And to the extent that consumer demand continues to be strong with the supply chain that -- that's -- that's providing products in a more predictable manner, in a more timely manner, if we ended up overcorrecting on our buys, then we will -- we will chase demand as we -- as we exit this year and enter into fiscal year '24. NIKE, Inc. (NKE) Q3 2023 Earnings Call Transcript So, should we think that, you know, you're kind of back to a pull market in China, you know, you should be able to sort of build off the momentum you've you've had this quarter, or just -- just how do we kind of think about the path forward in China from here? NIKE membership serves as a catalyst for digital growth, driving greater engagement and higher lifetime value in our highest margin channel. For the full year, ending May 2023, earnings are expected to be $3.70 per share, down from $3.75 a year ago, while full-year revenue of $50.03 billion would rise 7.10% year over year. This quarter, we saw movement and relative positioning as we create even more competitive separation coming out of this important consumer moment. Yes, Alex, we again will repeat some consistent things. ET Contents: Prepared. Great. I would say the supply chain dimension to what we've been doing with our membership is just phenomenal, having gone from 10% digital to 27%, delivering fast delivery times; fewer, reduced, and split shipments. This will truly be one of the greatest 18 months in footfall history, and NIKE will be there in full force. Thank you, operator. Now our approach starts with NIKE Digital as that's where most consumers begin their shopping journeys. We now expect gross margin to decline between 200 to 250 basis points versus the prior year. This was primarily due to elevated freight and logistics costs plus higher markdowns across the marketplace in North America and unfavorable changes in net foreign currency exchange rates. First quarter reported revenues were $12.7 billion, up 4 percent compared to the prior year and up 10 percent on a currency-neutral basis* And as my predecessors used to say, through a few competitive elbows along the way. And speaking, we can't wait, we're very excited for the Men's World Cup later this year and the Women's World Cup next summer. *Stock Advisor returns as of August 17, 2022, John Donahoe -- President and Chief Executive Officer. We adapt, we compete and we accelerate forward. 1 ever. As we prioritize a healthy pull market, we are confident that our brand strength and decisive actions positions us well to compete and to capture market share. But we do expect to see a benefit from a structural perspective as we continue to drive accelerated growth in NIKE Direct through our stores and through digital. It's an important channel for us to win in. We expect that total inventory in North America peaked in Q1, and we anticipate seeing sequential improvement over the year as we rebalance supply and continue serving strong consumer demand. Joining us on today's call will be Nike president and CEO, John Donahoe, and our chief financial officer, Matt Friend. We're supercharging how we serve consumers with innovation, direct connection and experiences that create lifelong relationships with our brands. And the great news is our team there is showing great agility navigating through, again, what we're calling a transitional environment. June 01, 2023 at 04:20 pm. And with our best boot ready for the biggest stages of the world's most popular game, not to mention a full lineup of Federation kits, we're thrilled about translating this energy into commercial opportunity. The new Mercurial and energy around it is NIKE at its best, as products, storytelling the marketplace and elite athletes come together to connect this innovation to consumers. And where we ended Q2 is in line with the plans that we set 90 days ago. Participants may also make reference to other nonpublic financial and statistical information and non-GAAP financial measures. And then, Air Max Scorpion was the starting point in the lifestyle basis, we have a strong Air Max pipeline over the next six to 12 months. But given the size of the transitory impacts that we've dealt with over the past two years, it's really important that we drive focus and attention on -- on -- on recovery of -- of some of those elements. And what's particularly exciting is that these two wildly popular teams will compete in the inaugural Women's Finalissima, the first-of-a-kind women's match between the European and South American champions. 01:06. And then, most recently, this quarter, we saw a significant improvement in transit times after we and many others had made the strategic decision to buy the holiday season earlier because of the longer transit times. Dunk outperformed in men's, and Pegasus continues to win with everyday runners. But I think we've been -- we've been pleased at seeing the year-over-year ASP growth, not just in North America but across all our geographies, and high levels of full price realization in the areas where our consumers are most interested and it's hard to get access to the products that -- that they -- that they desire, which means that from a brand health perspective, even amid the promotions, the consumer continues to choose NIKE. I believe, Matt, you said ASP was up in all geographies. And given the macro uncertainty that's out there for the consumer, we're taking a more measured approach and we're tightening our inventory buys around the world based on some of the risks that could materialize in the second half. In a dynamic operating environment, we delivered top line results ahead of plan, more than offsetting foreign exchange headwinds. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. And I guess just wondering if -- what you think about the industry when you think the industry might also sort of be better in balance on the supply demand equation. Calculated by Time-Weighted Return since 2002. Can you just talk about what your guidance assumes as it relates to any potential recession? And we're watching traffic closely. We think those are the structural things that set us up to gain long-term share while we're navigating through the short-term, short-term industrywide excess inventory. 1 favorite brand, further extending our lead among teams. And so, when we look at the underlying macro drivers long term of the consumer -- consumer interest in sport, health in Greater China, we continue to view it as a -- as a growth driver for our business long term. The 52-week range is $82.22 to $131.31. We had the supply of the right product, including some of our hottest global and local product. Good evening. And more importantly, our repeat-buying members who are more engaged, spend more, and spend more frequently are growing at an even faster pace of high double digits as they continue to be an important growth engine for our business.