1 00:00:02,560 --> 00:00:09,000 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. Welcome to our Bloomberg 2 00:00:09,039 --> 00:00:13,600 Speaker 1: audiences worldwide. Romaine Bostik here in Milan, Italy with Elliott Hill, 3 00:00:13,920 --> 00:00:16,600 Speaker 1: the CEO of Nike. Great to have you here, Elliott, 4 00:00:16,600 --> 00:00:17,360 Speaker 1: it's great to be here. 5 00:00:17,400 --> 00:00:19,920 Speaker 2: Thanks so much for having me and this great city. 6 00:00:20,120 --> 00:00:22,279 Speaker 1: Well, thanks for inviting me. You didn't just invite me 7 00:00:22,320 --> 00:00:25,439 Speaker 1: here to Italy. You invited me to actually oversee what 8 00:00:25,600 --> 00:00:28,440 Speaker 1: has become a big relaunch here of your ACG brand 9 00:00:28,480 --> 00:00:31,360 Speaker 1: here at the Milano Cortina Wonder Games. 10 00:00:31,480 --> 00:00:35,080 Speaker 3: Yes, yeah, it's been it's part of Clearly, we led 11 00:00:35,120 --> 00:00:38,440 Speaker 3: with some innovation in the apparel and air Milano jacket, 12 00:00:38,440 --> 00:00:42,040 Speaker 3: but we also use this as an opportunity to reintroduce, 13 00:00:42,120 --> 00:00:45,839 Speaker 3: if you will, the ACG brand to the trail running consumer. 14 00:00:46,320 --> 00:00:48,080 Speaker 3: And we thought there was no better place to do 15 00:00:48,159 --> 00:00:50,519 Speaker 3: it than here in Milan, when the eyes of the 16 00:00:50,520 --> 00:00:53,159 Speaker 3: world were watching, but also with the backdrop of the 17 00:00:53,159 --> 00:00:55,880 Speaker 3: Alps and the Dolomites. And I don't know if you 18 00:00:55,920 --> 00:00:58,959 Speaker 3: saw the train that we brought in the ACG Express 19 00:00:59,000 --> 00:01:02,480 Speaker 3: where we we brought consumers and we took them to 20 00:01:02,520 --> 00:01:04,880 Speaker 3: the wild we call it, and went took them out 21 00:01:04,920 --> 00:01:07,440 Speaker 3: on a trail Run and it's been been a really 22 00:01:07,480 --> 00:01:10,160 Speaker 3: really fun launch for us, and I think it has 23 00:01:10,200 --> 00:01:12,639 Speaker 3: done a great job of positioning the brand moving forward. 24 00:01:12,720 --> 00:01:15,479 Speaker 1: Well, you've guys Nike, I should say, there's been masters 25 00:01:15,520 --> 00:01:18,040 Speaker 1: at branding. You've been in the CEO chair now for 26 00:01:18,160 --> 00:01:20,840 Speaker 1: sixteen months or so, you've been a Nike for much 27 00:01:20,920 --> 00:01:23,479 Speaker 1: longer than that. I want to talk a little bit though, 28 00:01:23,800 --> 00:01:27,520 Speaker 1: about how these types of launches, the innovation that you see, 29 00:01:27,840 --> 00:01:31,039 Speaker 1: the buzz that it creates, how that actually translates into sales. 30 00:01:31,160 --> 00:01:31,679 Speaker 4: Yeah. 31 00:01:31,760 --> 00:01:34,400 Speaker 2: So I think a couple of things. 32 00:01:34,480 --> 00:01:37,720 Speaker 3: Number One, these moments, these sport moments are critically important 33 00:01:37,760 --> 00:01:39,680 Speaker 3: to our brand and frankly to the industry. 34 00:01:39,720 --> 00:01:40,840 Speaker 2: Their tentpole moments. 35 00:01:42,120 --> 00:01:46,200 Speaker 3: Again, whether it's an Olympics and a Winter Olympics, a 36 00:01:46,280 --> 00:01:50,560 Speaker 3: World Cup, a Super Bowl, NBAL Star Game, and frankly, 37 00:01:50,600 --> 00:01:55,280 Speaker 3: they're really I think galvanizing moments for our teams internally 38 00:01:55,880 --> 00:01:56,680 Speaker 3: to make certain. 39 00:01:56,520 --> 00:01:59,639 Speaker 2: We show up at our best and we. 40 00:01:59,600 --> 00:02:02,880 Speaker 3: Use those moments to take the relationships that we have 41 00:02:03,040 --> 00:02:08,359 Speaker 3: with the world's greatest athletes and translate that into coveted, beautiful, 42 00:02:08,440 --> 00:02:09,480 Speaker 3: innovative product. 43 00:02:09,480 --> 00:02:10,519 Speaker 2: There's only Nike. 44 00:02:10,400 --> 00:02:14,040 Speaker 3: Can do and so these are critical moments for our 45 00:02:14,080 --> 00:02:17,080 Speaker 3: company and for our brands, and no question, they are 46 00:02:17,120 --> 00:02:19,799 Speaker 3: the moments that can help create a halo over over 47 00:02:19,840 --> 00:02:20,639 Speaker 3: the business. 48 00:02:20,320 --> 00:02:22,960 Speaker 2: Side of the of the of the sport as well. 49 00:02:23,160 --> 00:02:25,880 Speaker 1: When we talk about the evolution of nigietri Core. You 50 00:02:25,960 --> 00:02:29,000 Speaker 1: are a road running company. Back the most recent quarter 51 00:02:29,200 --> 00:02:32,200 Speaker 1: with the relaunch of the Romeo and the pegasust line 52 00:02:32,200 --> 00:02:35,920 Speaker 1: twenty percent growth in your running business. There's another aspect 53 00:02:35,960 --> 00:02:37,720 Speaker 1: of this though, that's been picking up a report that 54 00:02:37,760 --> 00:02:40,239 Speaker 1: went viral a couple of years ago about the explosion 55 00:02:40,240 --> 00:02:42,919 Speaker 1: of off road running trail running if you will, and 56 00:02:43,040 --> 00:02:46,720 Speaker 1: ACG I would assume fits into that in some capacity. 57 00:02:47,080 --> 00:02:48,880 Speaker 1: Have you actually sat down and kind of gone over 58 00:02:49,000 --> 00:02:50,480 Speaker 1: what the market is for trail. 59 00:02:50,320 --> 00:02:51,280 Speaker 4: Running, No question. 60 00:02:51,360 --> 00:02:54,080 Speaker 3: So when we and by the way, it's not just 61 00:02:54,080 --> 00:02:57,040 Speaker 3: trail running, it's the overall outdoor industry, if you will, 62 00:02:57,040 --> 00:03:00,320 Speaker 3: And there's no there's no question that consumers are there 63 00:03:00,400 --> 00:03:04,040 Speaker 3: is a movement to getting outdoors, and whether it's in 64 00:03:04,160 --> 00:03:07,800 Speaker 3: China or in Europe or the United States. And so 65 00:03:07,840 --> 00:03:10,680 Speaker 3: we looked at the overall outdoor market and the opportunity 66 00:03:11,040 --> 00:03:14,800 Speaker 3: that exists there and it is there is some crossover, 67 00:03:15,040 --> 00:03:19,079 Speaker 3: but it is incremental opportunity from a branding and positioning 68 00:03:19,160 --> 00:03:21,919 Speaker 3: and a revenue perspective. So we decided to go after 69 00:03:21,960 --> 00:03:24,760 Speaker 3: that through the lens of Trail Running, which is a 70 00:03:25,840 --> 00:03:28,160 Speaker 3: point of strength from us where we can bring innovation 71 00:03:29,440 --> 00:03:32,720 Speaker 3: to the market and newness and freshness, and decided to 72 00:03:32,720 --> 00:03:35,520 Speaker 3: do it with the ACG brand because there is some 73 00:03:35,680 --> 00:03:39,120 Speaker 3: awareness already around that brand, and it has an attitude 74 00:03:39,200 --> 00:03:42,240 Speaker 3: and that we think is new and fresh and it 75 00:03:42,280 --> 00:03:44,840 Speaker 3: brings something different to the outdoor market. So we're really 76 00:03:44,880 --> 00:03:47,600 Speaker 3: excited about what ACG is going to do for us 77 00:03:47,640 --> 00:03:48,080 Speaker 3: long term. 78 00:03:48,120 --> 00:03:49,400 Speaker 4: So we're going to see more products. 79 00:03:49,520 --> 00:03:52,440 Speaker 3: You will see, no question, you will see us continue 80 00:03:52,480 --> 00:03:55,440 Speaker 3: to invest in the AGG brand. It's going to be 81 00:03:55,480 --> 00:04:00,840 Speaker 3: around design, protection, attitude, innovation, and you'll see a six 82 00:04:00,920 --> 00:04:02,960 Speaker 3: stand beyond Trail Running moving forward. 83 00:04:03,000 --> 00:04:05,160 Speaker 1: I'm curious though ACG has been around for a long time. 84 00:04:05,200 --> 00:04:07,520 Speaker 1: It started out as a performance. 85 00:04:07,080 --> 00:04:09,320 Speaker 2: Brand stop of the Top of the Mountain. 86 00:04:09,360 --> 00:04:11,200 Speaker 4: Top of the Mountain, a bunch of K two climbers. 87 00:04:11,240 --> 00:04:12,920 Speaker 1: You've got some reason decided to do out a pair 88 00:04:12,960 --> 00:04:15,640 Speaker 1: of Nike sneakers and they sent them back to Nike said, look, 89 00:04:15,680 --> 00:04:18,440 Speaker 1: here's some feedback, here's how we can make this better. 90 00:04:18,680 --> 00:04:20,560 Speaker 1: But ACG has been through some fits and starts, and 91 00:04:20,600 --> 00:04:23,240 Speaker 1: I am curious as to why there hasn't been that 92 00:04:23,320 --> 00:04:25,080 Speaker 1: continuity in the brand. 93 00:04:25,120 --> 00:04:25,560 Speaker 2: Was it the. 94 00:04:25,520 --> 00:04:28,800 Speaker 1: Marketing of it, Was it the innovation or lack thereof what? 95 00:04:28,960 --> 00:04:29,640 Speaker 2: No? I think. 96 00:04:29,760 --> 00:04:32,240 Speaker 3: I think with anything, it comes down to positioning. And 97 00:04:32,279 --> 00:04:34,360 Speaker 3: I'm really excited about where the team's going to take 98 00:04:34,400 --> 00:04:37,000 Speaker 3: this brand. We're calling it We're going for the wild Ones. 99 00:04:37,480 --> 00:04:40,440 Speaker 3: So you think about the outdoor world with a little 100 00:04:40,480 --> 00:04:44,480 Speaker 3: bit of an attitude and a swagger, with an element 101 00:04:44,520 --> 00:04:48,560 Speaker 3: and an approach around design and innovation, and so again 102 00:04:49,040 --> 00:04:51,039 Speaker 3: I'm excited for what the team has come up with 103 00:04:51,080 --> 00:04:53,960 Speaker 3: and the positioning and the opportunity that lies in. 104 00:04:54,160 --> 00:04:56,240 Speaker 1: You signed a lot of athletes under the ACE the 105 00:04:56,320 --> 00:04:59,600 Speaker 1: Nike ACD brand. Now you're sponsoring events in that space 106 00:04:59,640 --> 00:05:02,400 Speaker 1: as well. There has been I guess some concern about 107 00:05:02,400 --> 00:05:04,240 Speaker 1: this idea that a lot of what you see in 108 00:05:04,279 --> 00:05:06,840 Speaker 1: the outdoor space, particularly when it comes to ultra marathons 109 00:05:07,200 --> 00:05:09,679 Speaker 1: and a lot of the off road type of racing, 110 00:05:10,279 --> 00:05:13,239 Speaker 1: that there's a certain counterculture to that. And how does Nike, 111 00:05:13,360 --> 00:05:15,960 Speaker 1: which is probably one of the biggest sportswear companies in 112 00:05:16,000 --> 00:05:17,440 Speaker 1: the world, a mainstream brand. 113 00:05:18,000 --> 00:05:19,680 Speaker 4: Are you at risk of maybe. 114 00:05:19,720 --> 00:05:22,200 Speaker 1: Alienating some of those folks who just kind of want 115 00:05:22,200 --> 00:05:23,760 Speaker 1: to be on the fringe. 116 00:05:24,080 --> 00:05:27,200 Speaker 3: I think that's that is a risk if we just 117 00:05:27,240 --> 00:05:29,400 Speaker 3: showed up as the big bag Nike. But I think 118 00:05:29,440 --> 00:05:32,360 Speaker 3: this team, and if you were able to meet the 119 00:05:32,360 --> 00:05:35,599 Speaker 3: team that we've put on this they live and breathe 120 00:05:35,640 --> 00:05:39,080 Speaker 3: this space, so they understand it deeply. And we're trying 121 00:05:39,080 --> 00:05:41,680 Speaker 3: to show up and without question in the most authentic 122 00:05:41,720 --> 00:05:45,160 Speaker 3: way from an athlete perspective. And we've signed some as 123 00:05:45,200 --> 00:05:47,560 Speaker 3: you've already pointed out, some of the greatest athletes, and 124 00:05:47,600 --> 00:05:49,120 Speaker 3: how do we bring something new. 125 00:05:48,960 --> 00:05:52,000 Speaker 2: And different to the sport? 126 00:05:52,040 --> 00:05:53,360 Speaker 3: And I don't know if you saw what happened at 127 00:05:53,360 --> 00:05:56,240 Speaker 3: Western States with Caleb shows up at the starting line. 128 00:05:56,279 --> 00:06:00,040 Speaker 3: It's over one hundred degrees out and he's wearing, you know, 129 00:06:00,120 --> 00:06:02,880 Speaker 3: the radical air long sleeve top. People are looking in like, 130 00:06:03,400 --> 00:06:05,200 Speaker 3: are you crazy running in long sleeve? 131 00:06:05,680 --> 00:06:06,159 Speaker 2: But it's that. 132 00:06:06,720 --> 00:06:10,120 Speaker 3: But it's about performance and innovation that helped him obviously 133 00:06:10,160 --> 00:06:12,719 Speaker 3: win the race and set the second fastest time. So 134 00:06:12,760 --> 00:06:15,040 Speaker 3: we're going to come at it through the lens of innovation, 135 00:06:15,360 --> 00:06:18,120 Speaker 3: design and an attitude that I think is new, fresh 136 00:06:18,120 --> 00:06:21,720 Speaker 3: and Frankly, I believe and we believe the outdoor consumer 137 00:06:21,800 --> 00:06:22,560 Speaker 3: is ready for So. 138 00:06:22,520 --> 00:06:24,599 Speaker 1: The Airflow shirt that Caleb was wearing got a lot 139 00:06:24,600 --> 00:06:25,760 Speaker 1: of attention when you. 140 00:06:25,760 --> 00:06:26,800 Speaker 4: Look at the outdoor space. 141 00:06:26,839 --> 00:06:27,960 Speaker 1: So, I mean, there are a lot of names that 142 00:06:28,040 --> 00:06:33,480 Speaker 1: already dominates your Ultra solemnon smart Wool, Patagonia. Is this 143 00:06:33,600 --> 00:06:37,719 Speaker 1: strategy of going for that outdoor consumer. Is that actually 144 00:06:37,720 --> 00:06:39,479 Speaker 1: playing offense or are you catching up to the rest 145 00:06:39,480 --> 00:06:40,240 Speaker 1: of the folks. 146 00:06:40,520 --> 00:06:43,520 Speaker 3: I think we're always on the offense. We actually have 147 00:06:43,560 --> 00:06:45,960 Speaker 3: a maxim that says on the offense always, and so 148 00:06:46,000 --> 00:06:50,440 Speaker 3: the team's definitely approaching it from an offensive perspective and 149 00:06:50,480 --> 00:06:53,080 Speaker 3: trying to make certain that you know that we're coming 150 00:06:53,200 --> 00:06:56,760 Speaker 3: with something new, fresh perspective. And so far, the consumers 151 00:06:56,800 --> 00:06:59,760 Speaker 3: responding extremely well to the product, and it's not just 152 00:07:00,040 --> 00:07:01,880 Speaker 3: their parel conversation the same thing and. 153 00:07:01,839 --> 00:07:03,799 Speaker 2: The I don't know if you saw the Alpha Fly. 154 00:07:05,320 --> 00:07:08,320 Speaker 3: Shoe that we also launched with the full length carbon 155 00:07:08,800 --> 00:07:11,640 Speaker 3: plate and something new and different to the sport. 156 00:07:11,920 --> 00:07:14,200 Speaker 1: I've seen a lot of these products, Alpha Fly, the 157 00:07:14,280 --> 00:07:16,640 Speaker 1: hyper Ice, I'm forgetting a couple others. 158 00:07:16,800 --> 00:07:17,680 Speaker 4: The Nike mind. 159 00:07:18,640 --> 00:07:20,880 Speaker 1: All these things come out and I am curious these 160 00:07:20,880 --> 00:07:25,320 Speaker 1: are new products, and they seem like risky products. And 161 00:07:25,560 --> 00:07:27,240 Speaker 1: forgive me for saying this, but it seemed like for 162 00:07:27,280 --> 00:07:31,040 Speaker 1: a while Nike wasn't taking as much risk. It was 163 00:07:31,080 --> 00:07:34,680 Speaker 1: relying on you know, your classics, your dunks, you know, 164 00:07:34,760 --> 00:07:36,320 Speaker 1: retro styles and such. 165 00:07:36,640 --> 00:07:39,120 Speaker 4: Are you giving your team a. 166 00:07:39,040 --> 00:07:40,840 Speaker 1: Little bit more of a leash to be able to 167 00:07:40,880 --> 00:07:43,000 Speaker 1: sort of come up with these crazy ideas and try 168 00:07:43,040 --> 00:07:43,800 Speaker 1: to make them into something. 169 00:07:44,680 --> 00:07:48,760 Speaker 3: I think innovation with the athlete in mind has been 170 00:07:48,800 --> 00:07:53,160 Speaker 3: at the harder Nike from day one, and so as 171 00:07:53,200 --> 00:07:57,200 Speaker 3: I've come in, I am nurturing the design and innovation teams, 172 00:07:57,240 --> 00:07:59,640 Speaker 3: and we have one of the world's largest sports of 173 00:07:59,680 --> 00:08:02,240 Speaker 3: research lab, if not the largest sports research lab in 174 00:08:02,280 --> 00:08:04,320 Speaker 3: the world, in the Nike Sports Research. 175 00:08:04,040 --> 00:08:07,280 Speaker 2: That you were able to see that and how we. 176 00:08:07,280 --> 00:08:10,720 Speaker 3: Nurture those teams to dream and think and solve problems 177 00:08:11,200 --> 00:08:15,560 Speaker 3: and then translate that into beautiful, coveted, innovative product that 178 00:08:15,600 --> 00:08:18,080 Speaker 3: the consumer wants, needs and maybe sometimes it doesn't even 179 00:08:18,120 --> 00:08:21,200 Speaker 3: know they need. That's what I'm trying to bring to 180 00:08:22,240 --> 00:08:24,640 Speaker 3: this role, and too the team is to make sure 181 00:08:24,720 --> 00:08:26,880 Speaker 3: they understand the importance of it and we nurture it. 182 00:08:26,920 --> 00:08:29,880 Speaker 1: But your return, you were a Nike for three decades. 183 00:08:30,160 --> 00:08:32,720 Speaker 1: You left for about four years or so. At some 184 00:08:32,720 --> 00:08:34,720 Speaker 1: point you got a call to come back and to 185 00:08:34,800 --> 00:08:36,800 Speaker 1: actually be the CEO of this company. 186 00:08:36,840 --> 00:08:37,960 Speaker 4: Sixteen months roughly. 187 00:08:38,200 --> 00:08:40,080 Speaker 1: Now that you've been in that chair, you talk about 188 00:08:40,080 --> 00:08:42,000 Speaker 1: that Nike Innovation Lab. 189 00:08:42,280 --> 00:08:43,680 Speaker 4: I remember somebody says something to me. 190 00:08:43,679 --> 00:08:45,199 Speaker 1: You could tell me if this is true and forgive 191 00:08:45,240 --> 00:08:47,720 Speaker 1: my French, But there was some matra going around, some 192 00:08:47,760 --> 00:08:49,000 Speaker 1: momo saying create epic. 193 00:08:50,320 --> 00:08:52,280 Speaker 4: Was that from you or was that from film McCartney? 194 00:08:52,320 --> 00:08:54,760 Speaker 2: Where did that come from? I don't know if I 195 00:08:54,760 --> 00:08:55,640 Speaker 2: can take credit for it. 196 00:08:55,679 --> 00:08:57,959 Speaker 3: I know so where that came from is Phil and 197 00:08:58,960 --> 00:09:03,320 Speaker 3: his leadership team Martin. Here today, we're sitting around thinking 198 00:09:03,360 --> 00:09:06,320 Speaker 3: about the future and more importantly what we need to 199 00:09:06,320 --> 00:09:08,760 Speaker 3: do at this moment in time and always here at Nike. 200 00:09:08,880 --> 00:09:11,839 Speaker 3: And so yeah, I guess I can confirm that is true. 201 00:09:11,880 --> 00:09:14,520 Speaker 3: That's one of the mantras coming out of that building. 202 00:09:14,640 --> 00:09:17,480 Speaker 3: And uh and frankly, I love it. I love the 203 00:09:17,480 --> 00:09:19,640 Speaker 3: irreverence of it. I like the attitude of it. I 204 00:09:19,720 --> 00:09:22,200 Speaker 3: like the commitment around it. And I keep telling this 205 00:09:22,280 --> 00:09:25,440 Speaker 3: team run, I don't ask for forget or for permission, 206 00:09:25,480 --> 00:09:28,080 Speaker 3: ask for forgiveness and They're bringing some really interesting things 207 00:09:28,080 --> 00:09:29,240 Speaker 3: to the marketplace. 208 00:09:28,840 --> 00:09:30,360 Speaker 4: Right, and that translates to the consumer. 209 00:09:30,400 --> 00:09:34,400 Speaker 3: The consumer Libe, Well, you touched on a Nike Mind 210 00:09:34,800 --> 00:09:37,400 Speaker 3: that came out of the Nike Sports Research Lab. This 211 00:09:37,559 --> 00:09:44,040 Speaker 3: idea of how do you use neuroscience and reflexology underfoot 212 00:09:44,160 --> 00:09:48,079 Speaker 3: reflexology to get the athlete ready for their performance, that 213 00:09:48,160 --> 00:09:52,320 Speaker 3: came out of the Sports Research Lab and it has 214 00:09:52,400 --> 00:09:55,400 Speaker 3: now launched into the consumer and there's been a tremendous 215 00:09:55,480 --> 00:09:57,520 Speaker 3: demand for it. It was selling I just only wish 216 00:09:57,520 --> 00:09:59,480 Speaker 3: we would have made more, but it's selling out. There's 217 00:09:59,520 --> 00:10:02,959 Speaker 3: a consumers responding to it, not only from what it 218 00:10:03,000 --> 00:10:06,880 Speaker 3: does for them from an innovation perspective, but esthetically how 219 00:10:06,920 --> 00:10:07,680 Speaker 3: the product looks. 220 00:10:07,880 --> 00:10:09,960 Speaker 1: You spend a lot of time meeting with your athletes, 221 00:10:10,000 --> 00:10:12,240 Speaker 1: meeting with your designers as well. You also have to spend, 222 00:10:12,280 --> 00:10:13,760 Speaker 1: as a CEO of a public company, a lot of 223 00:10:13,800 --> 00:10:15,680 Speaker 1: time meeting with investors. 224 00:10:16,040 --> 00:10:17,200 Speaker 4: Have they bought into it yet? 225 00:10:17,800 --> 00:10:20,400 Speaker 3: I think there's no question. If you see where the 226 00:10:20,440 --> 00:10:25,200 Speaker 3: stock we've held up over the sixteen months, the focus 227 00:10:25,240 --> 00:10:31,520 Speaker 3: on sport, the focus on growth. They understand then the 228 00:10:31,600 --> 00:10:35,800 Speaker 3: portfolio that we have three strong brands, Nike, Converse in Jordan. 229 00:10:36,240 --> 00:10:38,680 Speaker 3: The focus on sport and how we're segmenting each of 230 00:10:38,679 --> 00:10:41,880 Speaker 3: the brands by sport and then ultimately paying it off 231 00:10:42,200 --> 00:10:44,560 Speaker 3: in one hundred and ninety countries around the world is 232 00:10:44,600 --> 00:10:47,840 Speaker 3: only Nike can do with the size and scale. 233 00:10:47,559 --> 00:10:47,959 Speaker 2: That we are. 234 00:10:48,040 --> 00:10:50,440 Speaker 1: But when I talk to analysts on Wall Street, they're 235 00:10:50,480 --> 00:10:53,000 Speaker 1: relatively complementary of what you've done, but they are still 236 00:10:53,040 --> 00:10:56,400 Speaker 1: concerned about sales growth, which is still relatively flat. The 237 00:10:56,520 --> 00:10:59,480 Speaker 1: concern about profitability, which to a certain extent is not 238 00:10:59,559 --> 00:11:01,200 Speaker 1: quite there, or at least not to their liking. 239 00:11:02,040 --> 00:11:02,880 Speaker 4: When do you get there? 240 00:11:02,920 --> 00:11:05,040 Speaker 1: When do you get there to a sustainable growth rate 241 00:11:05,080 --> 00:11:08,480 Speaker 1: on revenue and more importantly, generating more profits and wider 242 00:11:08,520 --> 00:11:09,120 Speaker 1: marg Yes. 243 00:11:09,720 --> 00:11:12,000 Speaker 3: One of the things that we've talked a lot about 244 00:11:12,160 --> 00:11:15,040 Speaker 3: is what is the top line growth rate with our 245 00:11:15,080 --> 00:11:18,880 Speaker 3: investors and the bottom line expectations that we're confident that 246 00:11:18,920 --> 00:11:21,440 Speaker 3: we'll be able to get there. We're confident that the 247 00:11:21,480 --> 00:11:25,280 Speaker 3: sport offense is the path forward. Those three brands, a 248 00:11:25,400 --> 00:11:30,440 Speaker 3: portfolio of brands, portfolio of sports, footwork, parel, accessories, and 249 00:11:30,480 --> 00:11:34,199 Speaker 3: then again paying it off in the marketplace. And so 250 00:11:34,600 --> 00:11:37,840 Speaker 3: the newness and freshness is working. We had some proof 251 00:11:37,840 --> 00:11:41,800 Speaker 3: points in the last quarter, North America being back to growth. 252 00:11:41,520 --> 00:11:43,480 Speaker 2: Which it was a strong result for US. 253 00:11:43,720 --> 00:11:48,040 Speaker 3: It's our largest reporting segment, are running back to double 254 00:11:48,080 --> 00:11:51,720 Speaker 3: digit growth. And then of course our wholesale business, which 255 00:11:51,720 --> 00:11:54,760 Speaker 3: is critically important to the future of our business to 256 00:11:54,800 --> 00:11:57,679 Speaker 3: serve consumers wherever they choose to shop, also back to growth. 257 00:11:57,760 --> 00:11:59,920 Speaker 1: So running North America was up more than twenty percent. 258 00:12:00,240 --> 00:12:02,839 Speaker 1: Overall in North America was up nine percent across the board. 259 00:12:03,040 --> 00:12:04,880 Speaker 1: I want to talk about the wholesale Dell Yeah, in 260 00:12:04,920 --> 00:12:07,240 Speaker 1: North America that did great. I think was roughly about 261 00:12:07,280 --> 00:12:10,000 Speaker 1: twenty percent as well. But there's been some criticism that 262 00:12:10,040 --> 00:12:13,520 Speaker 1: maybe the sell in that you've done is maybe too 263 00:12:13,559 --> 00:12:17,480 Speaker 1: heavy into North America and not necessarily broad based across 264 00:12:17,520 --> 00:12:18,040 Speaker 1: the globe. 265 00:12:19,840 --> 00:12:22,520 Speaker 3: The focus was across the entire globe in terms of 266 00:12:22,559 --> 00:12:23,920 Speaker 3: the wholesale side of the business. 267 00:12:24,240 --> 00:12:25,200 Speaker 2: I think the team in. 268 00:12:25,080 --> 00:12:30,280 Speaker 3: North America, led by Tom Petty, who's seasoned veteran, He 269 00:12:30,360 --> 00:12:31,360 Speaker 3: has the relationships. 270 00:12:31,400 --> 00:12:32,200 Speaker 4: He had to say. 271 00:12:33,760 --> 00:12:36,319 Speaker 2: No, that's pe d d ie for. 272 00:12:36,360 --> 00:12:41,320 Speaker 3: Correction, but he is tremendous understanding of the marketplace, the consumer, 273 00:12:41,880 --> 00:12:44,480 Speaker 3: and he and his team have done a really nice 274 00:12:44,559 --> 00:12:47,760 Speaker 3: job getting back and with the wholesale partners and driving 275 00:12:47,760 --> 00:12:49,600 Speaker 3: that level of growth, and you'll start to see that 276 00:12:50,600 --> 00:12:52,960 Speaker 3: across the rest of the world as well. Confident in 277 00:12:53,000 --> 00:12:58,599 Speaker 3: the leaders that we have in place and the desire 278 00:12:58,800 --> 00:13:02,200 Speaker 3: for our retail partners to serve their consumers. We have 279 00:13:02,240 --> 00:13:05,599 Speaker 3: a joint consumer and they want access to our brands. 280 00:13:05,240 --> 00:13:06,520 Speaker 4: That relationship better with them. 281 00:13:06,640 --> 00:13:10,080 Speaker 1: I mean Nike gravitated away from those retail partners to 282 00:13:10,120 --> 00:13:12,360 Speaker 1: a certain extent back in the early twenty twenties. I 283 00:13:12,400 --> 00:13:15,160 Speaker 1: know they kind of tried to reset under Donaho before 284 00:13:15,200 --> 00:13:17,720 Speaker 1: you then came in. When you talk about being able 285 00:13:17,720 --> 00:13:21,319 Speaker 1: to sell to Amazon or Macis or whoever else here, they're. 286 00:13:21,160 --> 00:13:23,600 Speaker 4: Comfortable with what you're giving them selection wise prices. 287 00:13:23,760 --> 00:13:26,000 Speaker 3: Yeah, I think there's there's no question we're having to 288 00:13:26,040 --> 00:13:30,880 Speaker 3: pull a lot of our products forward and to really 289 00:13:31,040 --> 00:13:34,319 Speaker 3: drive that innovation and that newness and freshness. I think 290 00:13:34,320 --> 00:13:36,600 Speaker 3: we have an opportunity around depth that we're still working 291 00:13:36,640 --> 00:13:38,240 Speaker 3: through to make sure that we have the depth to 292 00:13:38,320 --> 00:13:41,319 Speaker 3: drive the revenue and profits that they expect from us. 293 00:13:41,840 --> 00:13:45,200 Speaker 3: And we are committed to doing that because ultimately, when 294 00:13:45,200 --> 00:13:48,920 Speaker 3: we're driving gross and profitability for our retailers, that's how 295 00:13:48,960 --> 00:13:53,040 Speaker 3: we take market share, and that's that's certainly a I 296 00:13:53,080 --> 00:13:56,280 Speaker 3: think something that I am really challenging our team around 297 00:13:56,360 --> 00:14:00,640 Speaker 3: is that growth, profitability and then ultimately taken back market share. 298 00:14:00,720 --> 00:14:03,080 Speaker 1: What's the balance now between what you're doing with the 299 00:14:03,080 --> 00:14:08,280 Speaker 1: wholesale partners and what you're doing with your own Nike Digital, 300 00:14:08,600 --> 00:14:11,840 Speaker 1: which you're seeing a lot of softness contraction, if you will. 301 00:14:12,360 --> 00:14:15,360 Speaker 1: Is that just the natural transition as you try to 302 00:14:15,360 --> 00:14:17,199 Speaker 1: sort of right size things or is there something else 303 00:14:17,240 --> 00:14:17,720 Speaker 1: going on too? 304 00:14:17,800 --> 00:14:17,959 Speaker 2: No? 305 00:14:17,800 --> 00:14:20,320 Speaker 3: No, no, So I think I talked a lot about 306 00:14:20,480 --> 00:14:24,520 Speaker 3: in the five Actions, I talk about an elevated and 307 00:14:24,600 --> 00:14:29,880 Speaker 3: integrated marketplace, and really what the team now has lined 308 00:14:29,960 --> 00:14:33,040 Speaker 3: up on it's making certain that wherever a consumer chooses 309 00:14:33,080 --> 00:14:35,480 Speaker 3: to shop for our brand, we show up in a thoughtful, 310 00:14:35,600 --> 00:14:36,280 Speaker 3: meaningful way. 311 00:14:36,320 --> 00:14:37,120 Speaker 2: And what does that mean. 312 00:14:37,600 --> 00:14:41,080 Speaker 3: It's the consumer that shops that, whether it's digital, physical, 313 00:14:41,600 --> 00:14:44,040 Speaker 3: owned a partner, making certain that we have the right 314 00:14:44,040 --> 00:14:48,360 Speaker 3: assortment for that consumer and the right presentation, the right depth, 315 00:14:48,520 --> 00:14:50,480 Speaker 3: and the right level of service around it to create 316 00:14:50,520 --> 00:14:53,280 Speaker 3: the overall experience. And that's what we're driving right now, 317 00:14:53,320 --> 00:14:54,440 Speaker 3: and that's where our focus is. 318 00:14:54,520 --> 00:14:57,240 Speaker 1: How closely do you work with those retailers? I mean, 319 00:14:57,240 --> 00:15:00,520 Speaker 1: I saw you had last over the holiday in the 320 00:15:00,640 --> 00:15:04,120 Speaker 1: US something with urban outfitters kind of a pop up there. 321 00:15:04,160 --> 00:15:08,000 Speaker 1: Are you trying to be more integrated into what your 322 00:15:08,000 --> 00:15:09,520 Speaker 1: displays look like in those YEA. 323 00:15:10,400 --> 00:15:13,560 Speaker 3: The elevation piece that I talk about is being proud 324 00:15:13,600 --> 00:15:16,640 Speaker 3: of where our brand shows up wherever. That is again 325 00:15:16,800 --> 00:15:20,160 Speaker 3: digital physical owner partner, And it's not just the assortment, 326 00:15:20,240 --> 00:15:23,880 Speaker 3: it is the presentation of that assortment because at the 327 00:15:23,920 --> 00:15:26,760 Speaker 3: point of sale, when the consumers interacting with our brand, 328 00:15:27,280 --> 00:15:30,120 Speaker 3: it does it can't just be about the product. It 329 00:15:30,120 --> 00:15:32,280 Speaker 3: has to be about the stories that we tell and 330 00:15:32,360 --> 00:15:35,480 Speaker 3: the beauty of it. So there's no question that we're 331 00:15:35,480 --> 00:15:39,560 Speaker 3: putting an emphasis on really elevating the premium nature. 332 00:15:39,600 --> 00:15:41,920 Speaker 1: Of our brands in terms of being able to preserve 333 00:15:42,000 --> 00:15:45,520 Speaker 1: or that premium nature. I know you've pulled some inventory, yeah, 334 00:15:45,520 --> 00:15:47,640 Speaker 1: but you're trying to right size that. How much further 335 00:15:47,680 --> 00:15:50,960 Speaker 1: do you have to go to get inventory levels back 336 00:15:50,960 --> 00:15:53,880 Speaker 1: to a situation that are going to not cost you 337 00:15:53,960 --> 00:15:56,400 Speaker 1: any money or any additional money, but at the same 338 00:15:56,440 --> 00:15:57,960 Speaker 1: time puts you on a better path with the r 339 00:15:58,000 --> 00:15:58,520 Speaker 1: ZERU supply. 340 00:15:58,520 --> 00:15:59,920 Speaker 2: But you know, we touched on it last quarter. 341 00:16:00,160 --> 00:16:02,200 Speaker 3: We're feeling good about you know, we talk about the 342 00:16:02,200 --> 00:16:04,880 Speaker 3: big three, the Air Force one, the AJA one and 343 00:16:04,920 --> 00:16:08,160 Speaker 3: the Dunk Air Force one. Frankly is back to growth. 344 00:16:08,200 --> 00:16:10,720 Speaker 3: So we feel good about the work that the teams 345 00:16:10,760 --> 00:16:14,480 Speaker 3: are done. And more importantly than clean up, because I'm 346 00:16:14,800 --> 00:16:16,760 Speaker 3: like you, I'm tired of talking about the I'm more 347 00:16:16,760 --> 00:16:19,480 Speaker 3: about the innovation. What I'm most proud of is the 348 00:16:19,840 --> 00:16:22,960 Speaker 3: growth that we're seeing and running trainings coming behind that. 349 00:16:23,040 --> 00:16:25,720 Speaker 2: You'll see it in football, global football or soccer. As 350 00:16:25,720 --> 00:16:27,600 Speaker 2: we roll into on. 351 00:16:27,600 --> 00:16:30,680 Speaker 1: The conference call, that that soccer global football, if you will, 352 00:16:31,000 --> 00:16:34,000 Speaker 1: was more probably further along than some of the other 353 00:16:34,040 --> 00:16:34,920 Speaker 1: sports that you're involved. 354 00:16:35,000 --> 00:16:38,120 Speaker 3: Yeah, and again we talked about it earlier, those tempole moments. 355 00:16:38,280 --> 00:16:40,640 Speaker 3: The World Cup is a tempole pole moment and so 356 00:16:41,160 --> 00:16:44,200 Speaker 3: our cross functional team on that that comes to there, 357 00:16:44,520 --> 00:16:47,160 Speaker 3: comes to work every single day and focuses on the 358 00:16:47,200 --> 00:16:51,560 Speaker 3: game of football. That team hustled to make certain when 359 00:16:51,600 --> 00:16:52,840 Speaker 3: we launch. 360 00:16:53,160 --> 00:16:55,960 Speaker 2: For the World Cup. From Football our Boots. 361 00:16:56,560 --> 00:17:00,160 Speaker 3: We have three really silos, three different types of play 362 00:17:00,840 --> 00:17:02,720 Speaker 3: with innovation each of those silos. 363 00:17:02,880 --> 00:17:04,960 Speaker 4: And it gets to this idea too of also curation. 364 00:17:05,040 --> 00:17:06,760 Speaker 1: I mean, it's one thing to offer a wide variety 365 00:17:06,760 --> 00:17:08,639 Speaker 1: of things, but in terms of in your retail channels, 366 00:17:08,720 --> 00:17:10,600 Speaker 1: how much more curation are we going to see so 367 00:17:10,640 --> 00:17:12,919 Speaker 1: that you know, people kind of can be able to 368 00:17:13,040 --> 00:17:14,280 Speaker 1: zero in on exactly. 369 00:17:14,000 --> 00:17:14,320 Speaker 2: What they are. 370 00:17:14,400 --> 00:17:16,840 Speaker 3: Yeah, when you think about that marketplace that we talked 371 00:17:16,840 --> 00:17:21,119 Speaker 3: about earlier, Yeah, I think there's no question that we 372 00:17:21,240 --> 00:17:24,760 Speaker 3: have to be thoughtful about the specific consumers that shop 373 00:17:24,800 --> 00:17:30,320 Speaker 3: in each of the stores or retail partners, and being 374 00:17:30,359 --> 00:17:32,760 Speaker 3: thoughtful about the assortments, and we have to be much 375 00:17:32,800 --> 00:17:37,040 Speaker 3: more curated so that we create the differentiation in the 376 00:17:37,080 --> 00:17:40,880 Speaker 3: marketplace which allows each of our retail partners and ourselves 377 00:17:41,760 --> 00:17:43,520 Speaker 3: to drive the revenue profits that we need. 378 00:17:43,600 --> 00:17:44,880 Speaker 2: And so there's no question. 379 00:17:44,680 --> 00:17:47,800 Speaker 3: We're going to be much more thoughtful and curated in 380 00:17:47,840 --> 00:17:49,280 Speaker 3: the way we think about the marketplace. 381 00:17:49,359 --> 00:17:51,800 Speaker 1: And speaking of curation, I know North America is doing great. 382 00:17:51,880 --> 00:17:54,000 Speaker 1: There's still a lot of concerns about the contraction we're 383 00:17:54,000 --> 00:17:57,600 Speaker 1: seeing in China. Some of the criticism has been just 384 00:17:57,640 --> 00:17:59,720 Speaker 1: the model. The business model in China overall, with their 385 00:17:59,760 --> 00:18:02,280 Speaker 1: guards to apparel, is a little bit different. There was 386 00:18:02,320 --> 00:18:04,920 Speaker 1: also this idea that Nike stores weren't as cur rated 387 00:18:05,240 --> 00:18:08,000 Speaker 1: as what customers there wanted. When do we start to 388 00:18:08,040 --> 00:18:09,720 Speaker 1: see a bit more improvement there? I know, you've got 389 00:18:09,760 --> 00:18:10,080 Speaker 1: a new. 390 00:18:09,960 --> 00:18:11,280 Speaker 2: Head of Asia right now. Yeah, we do have a 391 00:18:11,320 --> 00:18:11,920 Speaker 2: new head of Asia. 392 00:18:11,920 --> 00:18:14,840 Speaker 3: I'm excited about Kathy Sparks and what she brings to 393 00:18:15,200 --> 00:18:17,520 Speaker 3: the market. So over twenty five years of experienced deep 394 00:18:17,560 --> 00:18:22,280 Speaker 3: retail consumer, she understands our brands and our culture. So 395 00:18:22,440 --> 00:18:24,919 Speaker 3: excited about what she and the team because it's going 396 00:18:24,960 --> 00:18:27,440 Speaker 3: to take the entire team to do. As you think 397 00:18:27,440 --> 00:18:31,240 Speaker 3: about China, we have to lead with sport and innovation 398 00:18:31,760 --> 00:18:34,320 Speaker 3: and that is the focus as we move forward, whether 399 00:18:34,320 --> 00:18:38,159 Speaker 3: it's through running, basketball is obviously big there, football, tennis 400 00:18:38,240 --> 00:18:41,480 Speaker 3: is on the rise, and so you'll see us reposition 401 00:18:41,600 --> 00:18:44,240 Speaker 3: the brand through the lens of sport. And it's not 402 00:18:44,320 --> 00:18:46,679 Speaker 3: just through product, but it's through to athletes and the 403 00:18:46,720 --> 00:18:51,199 Speaker 3: stories we tell much more local. Another opportunity that we 404 00:18:51,280 --> 00:18:54,000 Speaker 3: have is around the digital marketplace and making certain that 405 00:18:54,040 --> 00:18:58,400 Speaker 3: we clean up the digital marketplace and then ultimately pay 406 00:18:58,440 --> 00:19:03,360 Speaker 3: it off in the market in physical retail. And again 407 00:19:03,400 --> 00:19:06,240 Speaker 3: I'm excited about what the team's putting in place and 408 00:19:06,000 --> 00:19:07,280 Speaker 3: how we can move forward. 409 00:19:07,600 --> 00:19:10,000 Speaker 1: You know, you have put a big focus on the 410 00:19:10,040 --> 00:19:13,399 Speaker 1: athlete and refocus on sports, and it wasn't one of 411 00:19:13,440 --> 00:19:14,800 Speaker 1: the first things you did when you got back. You 412 00:19:14,840 --> 00:19:17,160 Speaker 1: kind of worked with them to kind of make sure 413 00:19:17,160 --> 00:19:20,640 Speaker 1: that that licensing agreement got extended. I am curious. I mean, 414 00:19:20,680 --> 00:19:23,880 Speaker 1: obviously American Football, if you will, I mean, how important 415 00:19:23,920 --> 00:19:26,679 Speaker 1: is it to have those types of agreements with the 416 00:19:26,760 --> 00:19:29,040 Speaker 1: major sporting agencies. 417 00:19:29,280 --> 00:19:33,680 Speaker 3: So yeah, My first just really quickly story, My first 418 00:19:33,720 --> 00:19:35,560 Speaker 3: slide that I put up when I walked out on 419 00:19:35,600 --> 00:19:39,479 Speaker 3: stage October fourteenth was We're a sport company and we're 420 00:19:39,480 --> 00:19:42,959 Speaker 3: a growth company. And unbelievable applause in the room and 421 00:19:43,000 --> 00:19:46,560 Speaker 3: so there was no question We're focused on sport and yes, 422 00:19:46,640 --> 00:19:48,480 Speaker 3: the story is true. One of the first phone calls 423 00:19:48,520 --> 00:19:53,679 Speaker 3: I made was to Roger Goodell, and we have a 424 00:19:53,760 --> 00:19:57,199 Speaker 3: long standing relationship and we're excited about the extension that 425 00:19:57,240 --> 00:20:03,679 Speaker 3: we have in place. Our brand showing up on the athletes, 426 00:20:04,240 --> 00:20:08,200 Speaker 3: the teams, and the leagues around the world, no question, 427 00:20:08,280 --> 00:20:12,119 Speaker 3: helps position us. And we use those moments as our 428 00:20:12,200 --> 00:20:15,840 Speaker 3: runways and how do we elevate and drive innovation and 429 00:20:15,920 --> 00:20:19,680 Speaker 3: design and look and feel that we can then leverage 430 00:20:19,720 --> 00:20:24,119 Speaker 3: across the entire portfolio that we have of brands in 431 00:20:24,160 --> 00:20:27,800 Speaker 3: different sports and then footwork, pairl accessories so critically important 432 00:20:28,359 --> 00:20:31,000 Speaker 3: to the success of our company moving forward. 433 00:20:31,280 --> 00:20:33,320 Speaker 4: You have a big focus on sports and the athlete. 434 00:20:33,400 --> 00:20:35,880 Speaker 1: You are still to a certain extent a lifestyle brand, 435 00:20:35,920 --> 00:20:37,440 Speaker 1: fashion brand, if you will. 436 00:20:37,280 --> 00:20:39,280 Speaker 4: Whether you want it to be or not. What's the 437 00:20:39,280 --> 00:20:40,040 Speaker 4: strategy with that. 438 00:20:40,080 --> 00:20:42,600 Speaker 1: I mean, you have the partnership with Nike Skims, obviously, 439 00:20:42,600 --> 00:20:45,640 Speaker 1: you have your own internal design that is very fashion forward. Here, 440 00:20:45,840 --> 00:20:48,520 Speaker 1: what's the balance between going after that customer who maybe 441 00:20:48,600 --> 00:20:51,360 Speaker 1: just wants it for lifestyle and fashion and those who 442 00:20:51,400 --> 00:20:52,680 Speaker 1: are looking for actual performance. 443 00:20:52,760 --> 00:20:54,280 Speaker 2: Yeah. I think the key is. 444 00:20:55,680 --> 00:20:58,879 Speaker 3: What separates us from any other fashion brand is sport 445 00:20:59,440 --> 00:21:03,760 Speaker 3: is innovator, is design, is the athlete. And I think 446 00:21:03,800 --> 00:21:07,760 Speaker 3: it's critically important that whatever we do and whenever and 447 00:21:07,800 --> 00:21:10,040 Speaker 3: we do and we will go after the sportswear business, 448 00:21:10,160 --> 00:21:13,280 Speaker 3: we do it through the lens of sport and the 449 00:21:13,359 --> 00:21:16,040 Speaker 3: athlete and what the athlete wants needs not only on 450 00:21:16,119 --> 00:21:19,640 Speaker 3: the pitch, field, coret track, but also how they want 451 00:21:19,680 --> 00:21:24,800 Speaker 3: to show up from a lifestyle perspective off those you know, 452 00:21:24,880 --> 00:21:29,280 Speaker 3: off the field pitches, et cetera. So, yeah, it is 453 00:21:29,320 --> 00:21:31,800 Speaker 3: a big business, It'll continue to be a big business, 454 00:21:32,520 --> 00:21:34,760 Speaker 3: but we are positioned in it through the lens of sport. 455 00:21:34,840 --> 00:21:39,320 Speaker 3: We even call it Nike Sportswear versus lifestyle or fashion. 456 00:21:39,400 --> 00:21:42,000 Speaker 4: Are you happy so far with the partnership with Skins. 457 00:21:42,080 --> 00:21:44,240 Speaker 2: Yeah, that's gone really well the launches. 458 00:21:45,920 --> 00:21:49,679 Speaker 3: I think the combination of our two brands and the 459 00:21:49,800 --> 00:21:52,840 Speaker 3: understanding that we have around performance and innovation in terms 460 00:21:52,880 --> 00:21:55,720 Speaker 3: of some of the materials, what they bring from a 461 00:21:55,720 --> 00:22:00,040 Speaker 3: body shaping perspective, and then from a footwear perspective, what 462 00:22:00,119 --> 00:22:02,440 Speaker 3: we bring to the table, and the consumers responded. We 463 00:22:02,640 --> 00:22:06,000 Speaker 3: just launched last week here in Europe, so we've now 464 00:22:06,119 --> 00:22:08,320 Speaker 3: moved into Europe with it and had a great launch 465 00:22:08,359 --> 00:22:09,520 Speaker 3: both in Paris and London. 466 00:22:09,600 --> 00:22:10,520 Speaker 2: So really excited. 467 00:22:10,600 --> 00:22:13,520 Speaker 1: Do you anticipate doing additional partnerships or is this kind 468 00:22:13,520 --> 00:22:14,320 Speaker 1: of a one off? 469 00:22:14,920 --> 00:22:15,400 Speaker 2: Oh? 470 00:22:15,520 --> 00:22:18,160 Speaker 3: I think in our world you always have to keep 471 00:22:19,160 --> 00:22:22,879 Speaker 3: our eyes and ears open and our minds open to 472 00:22:23,359 --> 00:22:28,080 Speaker 3: potential partnerships because I think the world in this collision 473 00:22:28,080 --> 00:22:31,959 Speaker 3: of sport and culture is only going to accelerate, and 474 00:22:32,000 --> 00:22:34,639 Speaker 3: it's our responsibility to make certain that we keep the 475 00:22:34,680 --> 00:22:35,320 Speaker 3: aperture wide. 476 00:22:35,359 --> 00:22:36,919 Speaker 1: But you've been at the Nike has been at the 477 00:22:36,960 --> 00:22:39,920 Speaker 1: nexus of that for years, for decades really, and I 478 00:22:40,000 --> 00:22:42,280 Speaker 1: am curious, like what's more stable. I mean, is it 479 00:22:42,720 --> 00:22:46,000 Speaker 1: the revenue that's generated from the lifestyle fashion folks, the 480 00:22:46,000 --> 00:22:49,960 Speaker 1: cool kids, if you will, or on the performance side. 481 00:22:50,840 --> 00:22:55,800 Speaker 3: There's no question that we will always run our brands and. 482 00:22:55,720 --> 00:22:57,359 Speaker 2: Our businesses through the world of sport. 483 00:22:57,520 --> 00:22:57,720 Speaker 4: Yeah. 484 00:22:58,119 --> 00:23:00,679 Speaker 3: That is who we are, that's what authentic, that's what 485 00:23:00,760 --> 00:23:04,359 Speaker 3: separates us, that's what differentiates us. So sport, without question, 486 00:23:04,880 --> 00:23:07,679 Speaker 3: will be the driver of our business moving forward with the. 487 00:23:07,720 --> 00:23:10,720 Speaker 1: Jordan brand, I mean, do you view that as a 488 00:23:10,760 --> 00:23:12,639 Speaker 1: performance brand or a lifestyle brand. 489 00:23:12,800 --> 00:23:15,240 Speaker 3: The Jordan brand was founded in the game of basketball, 490 00:23:15,640 --> 00:23:18,160 Speaker 3: and I think that the opportunity for the Jordan brand 491 00:23:18,200 --> 00:23:21,119 Speaker 3: is to continue to dimensionalize through sport. 492 00:23:21,920 --> 00:23:22,880 Speaker 2: We're lining up those. 493 00:23:22,840 --> 00:23:26,359 Speaker 3: Teams that I've talked about, those cross functional teams against 494 00:23:26,480 --> 00:23:29,719 Speaker 3: Jordan basketball, golf, which is true to who he is 495 00:23:29,920 --> 00:23:32,560 Speaker 3: as a person. It's one of his passions. And so 496 00:23:32,600 --> 00:23:35,320 Speaker 3: we have Jordan Goff that also, by the way, had 497 00:23:35,359 --> 00:23:39,600 Speaker 3: a really nice launch football and baseball, played baseball, and 498 00:23:39,640 --> 00:23:43,600 Speaker 3: then of course streetwear. So we are pushing to dimensionalize 499 00:23:43,640 --> 00:23:48,000 Speaker 3: the brand beyond just streetwear, but also position it in 500 00:23:48,160 --> 00:23:51,080 Speaker 3: sport and not just about footwear, but also about peril. 501 00:23:51,160 --> 00:23:52,800 Speaker 4: I want to say on basketball for a second. 502 00:23:52,800 --> 00:23:56,359 Speaker 1: Obviously, Jordan is just a singular figure that not only 503 00:23:57,119 --> 00:24:00,520 Speaker 1: helped the NBA, but certainly helped Nike. You look at 504 00:24:00,520 --> 00:24:04,639 Speaker 1: the last NBA Championships with Shay gilligas Alexander with the 505 00:24:04,680 --> 00:24:09,200 Speaker 1: Oklahoma Thunder winning wearing Converse, a brand that has. 506 00:24:09,240 --> 00:24:10,240 Speaker 4: Struggled a little bit. 507 00:24:10,280 --> 00:24:13,600 Speaker 1: Here, do you see any potential of using somebody like 508 00:24:13,680 --> 00:24:16,400 Speaker 1: Shay to maybe help to build up a little bit 509 00:24:16,400 --> 00:24:17,800 Speaker 1: more buzz for that brand. 510 00:24:17,680 --> 00:24:18,240 Speaker 2: No question. 511 00:24:19,280 --> 00:24:22,360 Speaker 3: I love what the team's doing and repositioning the Converse 512 00:24:22,400 --> 00:24:25,000 Speaker 3: brand around the idea of creators. 513 00:24:25,440 --> 00:24:28,480 Speaker 2: And there are creators, of course in the world of culture, 514 00:24:28,720 --> 00:24:29,600 Speaker 2: but they're also. 515 00:24:29,440 --> 00:24:32,520 Speaker 3: Creators in the games that we play, and in the 516 00:24:32,560 --> 00:24:35,800 Speaker 3: case of basketball, there's probably no more special creator than 517 00:24:35,840 --> 00:24:37,879 Speaker 3: Sae gilgis not only in the way that he plays 518 00:24:37,880 --> 00:24:40,439 Speaker 3: on the court, but that he shows up from a 519 00:24:40,560 --> 00:24:44,360 Speaker 3: from a style perspective and from a Converse I think 520 00:24:44,400 --> 00:24:47,040 Speaker 3: we became very focused on the Chuck and you'll start 521 00:24:47,080 --> 00:24:52,200 Speaker 3: to see his dimensionalized through basketball, through skate and then 522 00:24:52,320 --> 00:24:54,520 Speaker 3: of course the Jack Purcell, which is sitting out there 523 00:24:54,520 --> 00:24:55,640 Speaker 3: as well, so you'll start. 524 00:24:55,400 --> 00:24:55,960 Speaker 2: To see it more. 525 00:24:56,080 --> 00:24:57,240 Speaker 4: So you're still the messing in that. 526 00:24:57,359 --> 00:24:59,800 Speaker 3: No question, and so you'll start to see more of 527 00:24:59,840 --> 00:25:03,440 Speaker 3: a a broad approach to the Converse brand moving. 528 00:25:03,160 --> 00:25:05,960 Speaker 1: Forward, there's no plans to sell off Converse. I mean, 529 00:25:06,119 --> 00:25:07,200 Speaker 1: I'm sure you've heard the chatter. 530 00:25:07,359 --> 00:25:10,439 Speaker 3: Yeah, I've heard the chatter, and I've received even some 531 00:25:10,480 --> 00:25:13,000 Speaker 3: of the phone calls. But no, we're committed to the 532 00:25:13,040 --> 00:25:17,760 Speaker 3: Converse brand. We see it as an opportunity to address 533 00:25:18,359 --> 00:25:22,240 Speaker 3: a different consumer than is the core consumer at Nike 534 00:25:22,440 --> 00:25:25,000 Speaker 3: or the core consumer at Jordan. It's a separate and 535 00:25:25,040 --> 00:25:28,240 Speaker 3: distinct consumer and it offers us a separate and distinct 536 00:25:28,320 --> 00:25:31,000 Speaker 3: opportunity from a revenue and profitability perspective. 537 00:25:31,560 --> 00:25:33,920 Speaker 1: There was a memo that was floating around the Bloomberg 538 00:25:34,000 --> 00:25:36,640 Speaker 1: News obtained earlier this week saying that there were layoffs 539 00:25:36,680 --> 00:25:38,800 Speaker 1: coming at the Converse brand. 540 00:25:39,040 --> 00:25:40,960 Speaker 2: Yeah. Well, I think anytime that. 541 00:25:42,880 --> 00:25:45,480 Speaker 3: We come through with a new strategy and a new 542 00:25:45,520 --> 00:25:49,880 Speaker 3: approach and a new leadership and dimensionalizing the brand, we're 543 00:25:49,880 --> 00:25:53,440 Speaker 3: having to look to where we reposition resources. And again, 544 00:25:53,760 --> 00:25:57,160 Speaker 3: I'm excited about the strategy that we have in place 545 00:25:57,200 --> 00:25:59,919 Speaker 3: and the structure that we're putting in place. It's unfortunate, 546 00:26:00,600 --> 00:26:04,240 Speaker 3: uh and and I'm empathetic to some of those teammates, 547 00:26:04,240 --> 00:26:06,639 Speaker 3: but yeah, we're having a reposition somewhere we put our 548 00:26:06,680 --> 00:26:08,119 Speaker 3: resources as we move forward. 549 00:26:08,480 --> 00:26:11,000 Speaker 1: But as you sort of move in this process sixteen 550 00:26:11,040 --> 00:26:14,159 Speaker 1: months on the job right now, I don't want to 551 00:26:14,160 --> 00:26:15,480 Speaker 1: ask you how long you're going to be here. 552 00:26:15,560 --> 00:26:18,800 Speaker 4: I mean, you know, you're sixty two, you're so young. 553 00:26:19,960 --> 00:26:22,280 Speaker 2: But what is the called me out on my age? 554 00:26:22,720 --> 00:26:25,199 Speaker 4: I mean, you know it up, but you're I mean, 555 00:26:25,240 --> 00:26:26,920 Speaker 4: what are you like? Only you're only the fifth CEO 556 00:26:26,960 --> 00:26:27,920 Speaker 4: of this company. 557 00:26:28,200 --> 00:26:29,359 Speaker 2: By the way, so. 558 00:26:30,880 --> 00:26:34,600 Speaker 1: You're you're You're in rare air here pun intended. And 559 00:26:34,640 --> 00:26:36,359 Speaker 1: I guess the question is like, what do you want 560 00:26:36,480 --> 00:26:39,840 Speaker 1: this company to be? So when you finally leave, you know, 561 00:26:39,880 --> 00:26:42,640 Speaker 1: maybe many years from now, and that six CEO takes over, 562 00:26:42,840 --> 00:26:44,439 Speaker 1: what is the company that you leave behind? 563 00:26:44,440 --> 00:26:45,000 Speaker 4: What is Nike? 564 00:26:45,480 --> 00:26:45,600 Speaker 2: Uh? 565 00:26:45,960 --> 00:26:48,280 Speaker 3: So here, here's what I'd say. I think Nike is 566 00:26:48,359 --> 00:26:51,880 Speaker 3: like a relay race, and we have a saying that 567 00:26:52,400 --> 00:26:55,040 Speaker 3: at Nike there is no finish line. And in that 568 00:26:55,080 --> 00:26:58,280 Speaker 3: relay race, I think it's all of our responsibilities, it 569 00:26:58,320 --> 00:27:00,800 Speaker 3: doesn't matter what job you're in, is to take that 570 00:27:00,880 --> 00:27:05,840 Speaker 3: baton and to run as hard and fast as you can, 571 00:27:06,760 --> 00:27:09,919 Speaker 3: and to when you hand the baton off, leave it 572 00:27:09,960 --> 00:27:11,080 Speaker 3: better than you received it. 573 00:27:11,119 --> 00:27:13,879 Speaker 2: And that's my responsibility. And that's exactly what I expect 574 00:27:13,920 --> 00:27:14,879 Speaker 2: to do all right. 575 00:27:14,920 --> 00:27:16,679 Speaker 4: Well, Elliott, really appreciate you joining us. 576 00:27:16,760 --> 00:27:17,960 Speaker 2: Yeah, it's my pleasure. 577 00:27:18,040 --> 00:27:20,840 Speaker 3: I really appreciate you spending time with us and allowing 578 00:27:20,920 --> 00:27:21,880 Speaker 3: us to tell our stories. 579 00:27:21,880 --> 00:27:22,680 Speaker 2: So thank you so much. 580 00:27:22,720 --> 00:27:24,720 Speaker 1: All right, And hopefully you and get a check on 581 00:27:24,760 --> 00:27:27,399 Speaker 1: the podium and you can see some of your athletes there. Oh. 582 00:27:27,440 --> 00:27:30,000 Speaker 3: Look, I'm definitely looking forward to going and enjoying some 583 00:27:30,040 --> 00:27:30,520 Speaker 3: of the games. 584 00:27:30,520 --> 00:27:32,520 Speaker 4: So thank you so much, all right, Thank you, appreciate it. 585 00:27:32,520 --> 00:27:32,840 Speaker 4: Thank you