NIKE, Inc. (NYSE:NKE) Q4 2023 Earnings Call Transcript

John Donahoe: Thanks, Matt. And Matt Friend, I’ll take the first. So Matt Boss, we see the same structural tailwinds you just described. We are blessed with structural tailwinds around an expanding definition of sport, particularly around health and wellness and a related structural tailwind around this movement toward athleisure. And our marketplace strategy is simply geared to expand, leverage our competitive advantages to not only gain share, but also grow the market by being where consumers are. And again, as I said a minute ago, to give them when they want, how they want it. Two examples come to mind. One is just digital. I cannot tell you how important it is, our mobile apps. In fact, in Q4, our four mobile apps, SNKRS, the NIKE Mobile App, NTC and NRC had over 500 million visitors within the quarter, and that’s just in the U.S. or North America, APLA, and EMEA, doesn’t even count in China.

So, there’s no one else in the industry that has anything close to that. And what that means is, we are in – we’re in the privileged position of being in consumers’ pockets and on their home screens of their phones. That’s cherish real estate. So, our mobile apps give us a huge advantage because it creates shopping occasions when they’re browsing on SNKRS. It creates shopping occasions when they’re working out. It connects us to consumers globally and will help us both grow the market and gain share. A second example will be around health and wellness in women’s, and we talked in my remarks about the NIKE Well Collective. And what this really is, is, [Amy Montagne] [ph] is leading our women’s team and just doing a fabulous job. Amy and her team have sharp consumer insight around through the eyes of the women consumer, the female consumer, this intersection of sport, wellness, community and it’s all infused with style.

The distinction of style and performance for women is a much more nuanced and integrated thing. And so, NIKE Well Collective is both a branding and a way that our voice to her and our storytelling to her will come to life, but also our retail doors. And we have been opening Nike Live Doors, as you know. We’ll rebrand those NIKE Well Collective. I will tell you the NIKE Live doors, which are largely focused on women consumers, are performing very strongly around women’s performance product, around women’s fitness, leggings and bras, around lifestyle as well. And so in that way, we’re expanding our access to women consumers. And so, we’ll continue in our marketplace strategy. It really reiterates what I said a minute ago of being aggressive to be where the consumer is, so that we’re there when they want us, where they want us and how they want us.

Matt Friend: And Matt, I’ll just jump in on the question around revenue guidance. Let me start by just saying we’re incredibly pleased by the growth that we delivered in fiscal year 2023 with 16% growth on a currency-neutral basis. And if you look at our results in North America and EMEA on a currency-neutral basis, our growth was even higher. When you then compare our reported revenue growth to retail sales growth to the consumer across the marketplace, we drove strong double-digit growth in retail sales to the consumer throughout the year, including that trend continuing into the fourth quarter. And NIKE Direct in the fourth quarter grew 18% versus the prior year. So, in this fourth quarter, remember that we moderated the sell into wholesale, but continued in terms of trying to prioritize a healthy marketplace, and we still drove strong growth in retail sales across the marketplace.