WEBVTT - Nike CEO Elliott Hill Talks Turnaround, Converse Brands 0:00:02.560 --> 0:00:09.000 Bloomberg Audio Studios, podcasts, radio news. Welcome to our Bloomberg 0:00:09.039 --> 0:00:13.600 audiences worldwide. Romaine Bostik here in Milan, Italy with Elliott Hill, 0:00:13.920 --> 0:00:16.600 the CEO of Nike. Great to have you here, Elliott, 0:00:16.600 --> 0:00:17.360 it's great to be here. 0:00:17.400 --> 0:00:19.920 Thanks so much for having me and this great city. 0:00:20.120 --> 0:00:22.279 Well, thanks for inviting me. You didn't just invite me 0:00:22.320 --> 0:00:25.439 here to Italy. You invited me to actually oversee what 0:00:25.600 --> 0:00:28.440 has become a big relaunch here of your ACG brand 0:00:28.480 --> 0:00:31.360 here at the Milano Cortina Wonder Games. 0:00:31.480 --> 0:00:35.080 Yes, yeah, it's been it's part of Clearly, we led 0:00:35.120 --> 0:00:38.440 with some innovation in the apparel and air Milano jacket, 0:00:38.440 --> 0:00:42.040 but we also use this as an opportunity to reintroduce, 0:00:42.120 --> 0:00:45.839 if you will, the ACG brand to the trail running consumer. 0:00:46.320 --> 0:00:48.080 And we thought there was no better place to do 0:00:48.159 --> 0:00:50.519 it than here in Milan, when the eyes of the 0:00:50.520 --> 0:00:53.159 world were watching, but also with the backdrop of the 0:00:53.159 --> 0:00:55.880 Alps and the Dolomites. And I don't know if you 0:00:55.920 --> 0:00:58.959 saw the train that we brought in the ACG Express 0:00:59.000 --> 0:01:02.480 where we we brought consumers and we took them to 0:01:02.520 --> 0:01:04.880 the wild we call it, and went took them out 0:01:04.920 --> 0:01:07.440 on a trail Run and it's been been a really 0:01:07.480 --> 0:01:10.160 really fun launch for us, and I think it has 0:01:10.200 --> 0:01:12.639 done a great job of positioning the brand moving forward. 0:01:12.720 --> 0:01:15.479 Well, you've guys Nike, I should say, there's been masters 0:01:15.520 --> 0:01:18.040 at branding. You've been in the CEO chair now for 0:01:18.160 --> 0:01:20.840 sixteen months or so, you've been a Nike for much 0:01:20.920 --> 0:01:23.479 longer than that. I want to talk a little bit though, 0:01:23.800 --> 0:01:27.520 about how these types of launches, the innovation that you see, 0:01:27.840 --> 0:01:31.039 the buzz that it creates, how that actually translates into sales. 0:01:31.160 --> 0:01:31.679 Yeah. 0:01:31.760 --> 0:01:34.400 So I think a couple of things. 0:01:34.480 --> 0:01:37.720 Number One, these moments, these sport moments are critically important 0:01:37.760 --> 0:01:39.680 to our brand and frankly to the industry. 0:01:39.720 --> 0:01:40.840 Their tentpole moments. 0:01:42.120 --> 0:01:46.200 Again, whether it's an Olympics and a Winter Olympics, a 0:01:46.280 --> 0:01:50.560 World Cup, a Super Bowl, NBAL Star Game, and frankly, 0:01:50.600 --> 0:01:55.280 they're really I think galvanizing moments for our teams internally 0:01:55.880 --> 0:01:56.680 to make certain. 0:01:56.520 --> 0:01:59.639 We show up at our best and we. 0:01:59.600 --> 0:02:02.880 Use those moments to take the relationships that we have 0:02:03.040 --> 0:02:08.359 with the world's greatest athletes and translate that into coveted, beautiful, 0:02:08.440 --> 0:02:09.480 innovative product. 0:02:09.480 --> 0:02:10.519 There's only Nike. 0:02:10.400 --> 0:02:14.040 Can do and so these are critical moments for our 0:02:14.080 --> 0:02:17.080 company and for our brands, and no question, they are 0:02:17.120 --> 0:02:19.799 the moments that can help create a halo over over 0:02:19.840 --> 0:02:20.639 the business. 0:02:20.320 --> 0:02:22.960 Side of the of the of the sport as well. 0:02:23.160 --> 0:02:25.880 When we talk about the evolution of nigietri Core. You 0:02:25.960 --> 0:02:29.000 are a road running company. Back the most recent quarter 0:02:29.200 --> 0:02:32.200 with the relaunch of the Romeo and the pegasust line 0:02:32.200 --> 0:02:35.920 twenty percent growth in your running business. There's another aspect 0:02:35.960 --> 0:02:37.720 of this though, that's been picking up a report that 0:02:37.760 --> 0:02:40.239 went viral a couple of years ago about the explosion 0:02:40.240 --> 0:02:42.919 of off road running trail running if you will, and 0:02:43.040 --> 0:02:46.720 ACG I would assume fits into that in some capacity. 0:02:47.080 --> 0:02:48.880 Have you actually sat down and kind of gone over 0:02:49.000 --> 0:02:50.480 what the market is for trail. 0:02:50.320 --> 0:02:51.280 Running, No question. 0:02:51.360 --> 0:02:54.080 So when we and by the way, it's not just 0:02:54.080 --> 0:02:57.040 trail running, it's the overall outdoor industry, if you will, 0:02:57.040 --> 0:03:00.320 And there's no there's no question that consumers are there 0:03:00.400 --> 0:03:04.040 is a movement to getting outdoors, and whether it's in 0:03:04.160 --> 0:03:07.800 China or in Europe or the United States. And so 0:03:07.840 --> 0:03:10.680 we looked at the overall outdoor market and the opportunity 0:03:11.040 --> 0:03:14.800 that exists there and it is there is some crossover, 0:03:15.040 --> 0:03:19.079 but it is incremental opportunity from a branding and positioning 0:03:19.160 --> 0:03:21.919 and a revenue perspective. So we decided to go after 0:03:21.960 --> 0:03:24.760 that through the lens of Trail Running, which is a 0:03:25.840 --> 0:03:28.160 point of strength from us where we can bring innovation 0:03:29.440 --> 0:03:32.720 to the market and newness and freshness, and decided to 0:03:32.720 --> 0:03:35.520 do it with the ACG brand because there is some 0:03:35.680 --> 0:03:39.120 awareness already around that brand, and it has an attitude 0:03:39.200 --> 0:03:42.240 and that we think is new and fresh and it 0:03:42.280 --> 0:03:44.840 brings something different to the outdoor market. So we're really 0:03:44.880 --> 0:03:47.600 excited about what ACG is going to do for us 0:03:47.640 --> 0:03:48.080 long term. 0:03:48.120 --> 0:03:49.400 So we're going to see more products. 0:03:49.520 --> 0:03:52.440 You will see, no question, you will see us continue 0:03:52.480 --> 0:03:55.440 to invest in the AGG brand. It's going to be 0:03:55.480 --> 0:04:00.840 around design, protection, attitude, innovation, and you'll see a six 0:04:00.920 --> 0:04:02.960 stand beyond Trail Running moving forward. 0:04:03.000 --> 0:04:05.160 I'm curious though ACG has been around for a long time. 0:04:05.200 --> 0:04:07.520 It started out as a performance. 0:04:07.080 --> 0:04:09.320 Brand stop of the Top of the Mountain. 0:04:09.360 --> 0:04:11.200 Top of the Mountain, a bunch of K two climbers. 0:04:11.240 --> 0:04:12.920 You've got some reason decided to do out a pair 0:04:12.960 --> 0:04:15.640 of Nike sneakers and they sent them back to Nike said, look, 0:04:15.680 --> 0:04:18.440 here's some feedback, here's how we can make this better. 0:04:18.680 --> 0:04:20.560 But ACG has been through some fits and starts, and 0:04:20.600 --> 0:04:23.240 I am curious as to why there hasn't been that 0:04:23.320 --> 0:04:25.080 continuity in the brand. 0:04:25.120 --> 0:04:25.560 Was it the. 0:04:25.520 --> 0:04:28.800 Marketing of it, Was it the innovation or lack thereof what? 0:04:28.960 --> 0:04:29.640 No? I think. 0:04:29.760 --> 0:04:32.240 I think with anything, it comes down to positioning. And 0:04:32.279 --> 0:04:34.360 I'm really excited about where the team's going to take 0:04:34.400 --> 0:04:37.000 this brand. We're calling it We're going for the wild Ones. 0:04:37.480 --> 0:04:40.440 So you think about the outdoor world with a little 0:04:40.480 --> 0:04:44.480 bit of an attitude and a swagger, with an element 0:04:44.520 --> 0:04:48.560 and an approach around design and innovation, and so again 0:04:49.040 --> 0:04:51.039 I'm excited for what the team has come up with 0:04:51.080 --> 0:04:53.960 and the positioning and the opportunity that lies in. 0:04:54.160 --> 0:04:56.240 You signed a lot of athletes under the ACE the 0:04:56.320 --> 0:04:59.600 Nike ACD brand. Now you're sponsoring events in that space 0:04:59.640 --> 0:05:02.400 as well. There has been I guess some concern about 0:05:02.400 --> 0:05:04.240 this idea that a lot of what you see in 0:05:04.279 --> 0:05:06.840 the outdoor space, particularly when it comes to ultra marathons 0:05:07.200 --> 0:05:09.679 and a lot of the off road type of racing, 0:05:10.279 --> 0:05:13.239 that there's a certain counterculture to that. And how does Nike, 0:05:13.360 --> 0:05:15.960 which is probably one of the biggest sportswear companies in 0:05:16.000 --> 0:05:17.440 the world, a mainstream brand. 0:05:18.000 --> 0:05:19.680 Are you at risk of maybe. 0:05:19.720 --> 0:05:22.200 Alienating some of those folks who just kind of want 0:05:22.200 --> 0:05:23.760 to be on the fringe. 0:05:24.080 --> 0:05:27.200 I think that's that is a risk if we just 0:05:27.240 --> 0:05:29.400 showed up as the big bag Nike. But I think 0:05:29.440 --> 0:05:32.360 this team, and if you were able to meet the 0:05:32.360 --> 0:05:35.599 team that we've put on this they live and breathe 0:05:35.640 --> 0:05:39.080 this space, so they understand it deeply. And we're trying 0:05:39.080 --> 0:05:41.680 to show up and without question in the most authentic 0:05:41.720 --> 0:05:45.160 way from an athlete perspective. And we've signed some as 0:05:45.200 --> 0:05:47.560 you've already pointed out, some of the greatest athletes, and 0:05:47.600 --> 0:05:49.120 how do we bring something new. 0:05:48.960 --> 0:05:52.000 And different to the sport? 0:05:52.040 --> 0:05:53.360 And I don't know if you saw what happened at 0:05:53.360 --> 0:05:56.240 Western States with Caleb shows up at the starting line. 0:05:56.279 --> 0:06:00.040 It's over one hundred degrees out and he's wearing, you know, 0:06:00.120 --> 0:06:02.880 the radical air long sleeve top. People are looking in like, 0:06:03.400 --> 0:06:05.200 are you crazy running in long sleeve? 0:06:05.680 --> 0:06:06.159 But it's that. 0:06:06.720 --> 0:06:10.120 But it's about performance and innovation that helped him obviously 0:06:10.160 --> 0:06:12.719 win the race and set the second fastest time. So 0:06:12.760 --> 0:06:15.040 we're going to come at it through the lens of innovation, 0:06:15.360 --> 0:06:18.120 design and an attitude that I think is new, fresh 0:06:18.120 --> 0:06:21.720 and Frankly, I believe and we believe the outdoor consumer 0:06:21.800 --> 0:06:22.560 is ready for So. 0:06:22.520 --> 0:06:24.599 The Airflow shirt that Caleb was wearing got a lot 0:06:24.600 --> 0:06:25.760 of attention when you. 0:06:25.760 --> 0:06:26.800 Look at the outdoor space. 0:06:26.839 --> 0:06:27.960 So, I mean, there are a lot of names that 0:06:28.040 --> 0:06:33.480 already dominates your Ultra solemnon smart Wool, Patagonia. Is this 0:06:33.600 --> 0:06:37.719 strategy of going for that outdoor consumer. Is that actually 0:06:37.720 --> 0:06:39.479 playing offense or are you catching up to the rest 0:06:39.480 --> 0:06:40.240 of the folks. 0:06:40.520 --> 0:06:43.520 I think we're always on the offense. We actually have 0:06:43.560 --> 0:06:45.960 a maxim that says on the offense always, and so 0:06:46.000 --> 0:06:50.440 the team's definitely approaching it from an offensive perspective and 0:06:50.480 --> 0:06:53.080 trying to make certain that you know that we're coming 0:06:53.200 --> 0:06:56.760 with something new, fresh perspective. And so far, the consumers 0:06:56.800 --> 0:06:59.760 responding extremely well to the product, and it's not just 0:07:00.040 --> 0:07:01.880 their parel conversation the same thing and. 0:07:01.839 --> 0:07:03.799 The I don't know if you saw the Alpha Fly. 0:07:05.320 --> 0:07:08.320 Shoe that we also launched with the full length carbon 0:07:08.800 --> 0:07:11.640 plate and something new and different to the sport. 0:07:11.920 --> 0:07:14.200 I've seen a lot of these products, Alpha Fly, the 0:07:14.280 --> 0:07:16.640 hyper Ice, I'm forgetting a couple others. 0:07:16.800 --> 0:07:17.680 The Nike mind. 0:07:18.640 --> 0:07:20.880 All these things come out and I am curious these 0:07:20.880 --> 0:07:25.320 are new products, and they seem like risky products. And 0:07:25.560 --> 0:07:27.240 forgive me for saying this, but it seemed like for 0:07:27.280 --> 0:07:31.040 a while Nike wasn't taking as much risk. It was 0:07:31.080 --> 0:07:34.680 relying on you know, your classics, your dunks, you know, 0:07:34.760 --> 0:07:36.320 retro styles and such. 0:07:36.640 --> 0:07:39.120 Are you giving your team a. 0:07:39.040 --> 0:07:40.840 Little bit more of a leash to be able to 0:07:40.880 --> 0:07:43.000 sort of come up with these crazy ideas and try 0:07:43.040 --> 0:07:43.800 to make them into something. 0:07:44.680 --> 0:07:48.760 I think innovation with the athlete in mind has been 0:07:48.800 --> 0:07:53.160 at the harder Nike from day one, and so as 0:07:53.200 --> 0:07:57.200 I've come in, I am nurturing the design and innovation teams, 0:07:57.240 --> 0:07:59.640 and we have one of the world's largest sports of 0:07:59.680 --> 0:08:02.240 research lab, if not the largest sports research lab in 0:08:02.280 --> 0:08:04.320 the world, in the Nike Sports Research. 0:08:04.040 --> 0:08:07.280 That you were able to see that and how we. 0:08:07.280 --> 0:08:10.720 Nurture those teams to dream and think and solve problems 0:08:11.200 --> 0:08:15.560 and then translate that into beautiful, coveted, innovative product that 0:08:15.600 --> 0:08:18.080 the consumer wants, needs and maybe sometimes it doesn't even 0:08:18.120 --> 0:08:21.200 know they need. That's what I'm trying to bring to 0:08:22.240 --> 0:08:24.640 this role, and too the team is to make sure 0:08:24.720 --> 0:08:26.880 they understand the importance of it and we nurture it. 0:08:26.920 --> 0:08:29.880 But your return, you were a Nike for three decades. 0:08:30.160 --> 0:08:32.720 You left for about four years or so. At some 0:08:32.720 --> 0:08:34.720 point you got a call to come back and to 0:08:34.800 --> 0:08:36.800 actually be the CEO of this company. 0:08:36.840 --> 0:08:37.960 Sixteen months roughly. 0:08:38.200 --> 0:08:40.080 Now that you've been in that chair, you talk about 0:08:40.080 --> 0:08:42.000 that Nike Innovation Lab. 0:08:42.280 --> 0:08:43.680 I remember somebody says something to me. 0:08:43.679 --> 0:08:45.199 You could tell me if this is true and forgive 0:08:45.240 --> 0:08:47.720 my French, But there was some matra going around, some 0:08:47.760 --> 0:08:49.000 momo saying create epic. 0:08:50.320 --> 0:08:52.280 Was that from you or was that from film McCartney? 0:08:52.320 --> 0:08:54.760 Where did that come from? I don't know if I 0:08:54.760 --> 0:08:55.640 can take credit for it. 0:08:55.679 --> 0:08:57.959 I know so where that came from is Phil and 0:08:58.960 --> 0:09:03.320 his leadership team Martin. Here today, we're sitting around thinking 0:09:03.360 --> 0:09:06.320 about the future and more importantly what we need to 0:09:06.320 --> 0:09:08.760 do at this moment in time and always here at Nike. 0:09:08.880 --> 0:09:11.839 And so yeah, I guess I can confirm that is true. 0:09:11.880 --> 0:09:14.520 That's one of the mantras coming out of that building. 0:09:14.640 --> 0:09:17.480 And uh and frankly, I love it. I love the 0:09:17.480 --> 0:09:19.640 irreverence of it. I like the attitude of it. I 0:09:19.720 --> 0:09:22.200 like the commitment around it. And I keep telling this 0:09:22.280 --> 0:09:25.440 team run, I don't ask for forget or for permission, 0:09:25.480 --> 0:09:28.080 ask for forgiveness and They're bringing some really interesting things 0:09:28.080 --> 0:09:29.240 to the marketplace. 0:09:28.840 --> 0:09:30.360 Right, and that translates to the consumer. 0:09:30.400 --> 0:09:34.400 The consumer Libe, Well, you touched on a Nike Mind 0:09:34.800 --> 0:09:37.400 that came out of the Nike Sports Research Lab. This 0:09:37.559 --> 0:09:44.040 idea of how do you use neuroscience and reflexology underfoot 0:09:44.160 --> 0:09:48.079 reflexology to get the athlete ready for their performance, that 0:09:48.160 --> 0:09:52.320 came out of the Sports Research Lab and it has 0:09:52.400 --> 0:09:55.400 now launched into the consumer and there's been a tremendous 0:09:55.480 --> 0:09:57.520 demand for it. It was selling I just only wish 0:09:57.520 --> 0:09:59.480 we would have made more, but it's selling out. There's 0:09:59.520 --> 0:10:02.959 a consumers responding to it, not only from what it 0:10:03.000 --> 0:10:06.880 does for them from an innovation perspective, but esthetically how 0:10:06.920 --> 0:10:07.680 the product looks. 0:10:07.880 --> 0:10:09.960 You spend a lot of time meeting with your athletes, 0:10:10.000 --> 0:10:12.240 meeting with your designers as well. You also have to spend, 0:10:12.280 --> 0:10:13.760 as a CEO of a public company, a lot of 0:10:13.800 --> 0:10:15.680 time meeting with investors. 0:10:16.040 --> 0:10:17.200 Have they bought into it yet? 0:10:17.800 --> 0:10:20.400 I think there's no question. If you see where the 0:10:20.440 --> 0:10:25.200 stock we've held up over the sixteen months, the focus 0:10:25.240 --> 0:10:31.520 on sport, the focus on growth. They understand then the 0:10:31.600 --> 0:10:35.800 portfolio that we have three strong brands, Nike, Converse in Jordan. 0:10:36.240 --> 0:10:38.680 The focus on sport and how we're segmenting each of 0:10:38.679 --> 0:10:41.880 the brands by sport and then ultimately paying it off 0:10:42.200 --> 0:10:44.560 in one hundred and ninety countries around the world is 0:10:44.600 --> 0:10:47.840 only Nike can do with the size and scale. 0:10:47.559 --> 0:10:47.959 That we are. 0:10:48.040 --> 0:10:50.440 But when I talk to analysts on Wall Street, they're 0:10:50.480 --> 0:10:53.000 relatively complementary of what you've done, but they are still 0:10:53.040 --> 0:10:56.400 concerned about sales growth, which is still relatively flat. The 0:10:56.520 --> 0:10:59.480 concern about profitability, which to a certain extent is not 0:10:59.559 --> 0:11:01.200 quite there, or at least not to their liking. 0:11:02.040 --> 0:11:02.880 When do you get there? 0:11:02.920 --> 0:11:05.040 When do you get there to a sustainable growth rate 0:11:05.080 --> 0:11:08.480 on revenue and more importantly, generating more profits and wider 0:11:08.520 --> 0:11:09.120 marg Yes. 0:11:09.720 --> 0:11:12.000 One of the things that we've talked a lot about 0:11:12.160 --> 0:11:15.040 is what is the top line growth rate with our 0:11:15.080 --> 0:11:18.880 investors and the bottom line expectations that we're confident that 0:11:18.920 --> 0:11:21.440 we'll be able to get there. We're confident that the 0:11:21.480 --> 0:11:25.280 sport offense is the path forward. Those three brands, a 0:11:25.400 --> 0:11:30.440 portfolio of brands, portfolio of sports, footwork, parel, accessories, and 0:11:30.480 --> 0:11:34.199 then again paying it off in the marketplace. And so 0:11:34.600 --> 0:11:37.840 the newness and freshness is working. We had some proof 0:11:37.840 --> 0:11:41.800 points in the last quarter, North America being back to growth. 0:11:41.520 --> 0:11:43.480 Which it was a strong result for US. 0:11:43.720 --> 0:11:48.040 It's our largest reporting segment, are running back to double 0:11:48.080 --> 0:11:51.720 digit growth. And then of course our wholesale business, which 0:11:51.720 --> 0:11:54.760 is critically important to the future of our business to 0:11:54.800 --> 0:11:57.679 serve consumers wherever they choose to shop, also back to growth. 0:11:57.760 --> 0:11:59.920 So running North America was up more than twenty percent. 0:12:00.240 --> 0:12:02.839 Overall in North America was up nine percent across the board. 0:12:03.040 --> 0:12:04.880 I want to talk about the wholesale Dell Yeah, in 0:12:04.920 --> 0:12:07.240 North America that did great. I think was roughly about 0:12:07.280 --> 0:12:10.000 twenty percent as well. But there's been some criticism that 0:12:10.040 --> 0:12:13.520 maybe the sell in that you've done is maybe too 0:12:13.559 --> 0:12:17.480 heavy into North America and not necessarily broad based across 0:12:17.520 --> 0:12:18.040 the globe. 0:12:19.840 --> 0:12:22.520 The focus was across the entire globe in terms of 0:12:22.559 --> 0:12:23.920 the wholesale side of the business. 0:12:24.240 --> 0:12:25.200 I think the team in. 0:12:25.080 --> 0:12:30.280 North America, led by Tom Petty, who's seasoned veteran, He 0:12:30.360 --> 0:12:31.360 has the relationships. 0:12:31.400 --> 0:12:32.200 He had to say. 0:12:33.760 --> 0:12:36.319 No, that's pe d d ie for. 0:12:36.360 --> 0:12:41.320 Correction, but he is tremendous understanding of the marketplace, the consumer, 0:12:41.880 --> 0:12:44.480 and he and his team have done a really nice 0:12:44.559 --> 0:12:47.760 job getting back and with the wholesale partners and driving 0:12:47.760 --> 0:12:49.600 that level of growth, and you'll start to see that 0:12:50.600 --> 0:12:52.960 across the rest of the world as well. Confident in 0:12:53.000 --> 0:12:58.599 the leaders that we have in place and the desire 0:12:58.800 --> 0:13:02.200 for our retail partners to serve their consumers. We have 0:13:02.240 --> 0:13:05.599 a joint consumer and they want access to our brands. 0:13:05.240 --> 0:13:06.520 That relationship better with them. 0:13:06.640 --> 0:13:10.080 I mean Nike gravitated away from those retail partners to 0:13:10.120 --> 0:13:12.360 a certain extent back in the early twenty twenties. I 0:13:12.400 --> 0:13:15.160 know they kind of tried to reset under Donaho before 0:13:15.200 --> 0:13:17.720 you then came in. When you talk about being able 0:13:17.720 --> 0:13:21.319 to sell to Amazon or Macis or whoever else here, they're. 0:13:21.160 --> 0:13:23.600 Comfortable with what you're giving them selection wise prices. 0:13:23.760 --> 0:13:26.000 Yeah, I think there's there's no question we're having to 0:13:26.040 --> 0:13:30.880 pull a lot of our products forward and to really 0:13:31.040 --> 0:13:34.319 drive that innovation and that newness and freshness. I think 0:13:34.320 --> 0:13:36.600 we have an opportunity around depth that we're still working 0:13:36.640 --> 0:13:38.240 through to make sure that we have the depth to 0:13:38.320 --> 0:13:41.319 drive the revenue and profits that they expect from us. 0:13:41.840 --> 0:13:45.200 And we are committed to doing that because ultimately, when 0:13:45.200 --> 0:13:48.920 we're driving gross and profitability for our retailers, that's how 0:13:48.960 --> 0:13:53.040 we take market share, and that's that's certainly a I 0:13:53.080 --> 0:13:56.280 think something that I am really challenging our team around 0:13:56.360 --> 0:14:00.640 is that growth, profitability and then ultimately taken back market share. 0:14:00.720 --> 0:14:03.080 What's the balance now between what you're doing with the 0:14:03.080 --> 0:14:08.280 wholesale partners and what you're doing with your own Nike Digital, 0:14:08.600 --> 0:14:11.840 which you're seeing a lot of softness contraction, if you will. 0:14:12.360 --> 0:14:15.360 Is that just the natural transition as you try to 0:14:15.360 --> 0:14:17.199 sort of right size things or is there something else 0:14:17.240 --> 0:14:17.720 going on too? 0:14:17.800 --> 0:14:17.959 No? 0:14:17.800 --> 0:14:20.320 No, no, So I think I talked a lot about 0:14:20.480 --> 0:14:24.520 in the five Actions, I talk about an elevated and 0:14:24.600 --> 0:14:29.880 integrated marketplace, and really what the team now has lined 0:14:29.960 --> 0:14:33.040 up on it's making certain that wherever a consumer chooses 0:14:33.080 --> 0:14:35.480 to shop for our brand, we show up in a thoughtful, 0:14:35.600 --> 0:14:36.280 meaningful way. 0:14:36.320 --> 0:14:37.120 And what does that mean. 0:14:37.600 --> 0:14:41.080 It's the consumer that shops that, whether it's digital, physical, 0:14:41.600 --> 0:14:44.040 owned a partner, making certain that we have the right 0:14:44.040 --> 0:14:48.360 assortment for that consumer and the right presentation, the right depth, 0:14:48.520 --> 0:14:50.480 and the right level of service around it to create 0:14:50.520 --> 0:14:53.280 the overall experience. And that's what we're driving right now, 0:14:53.320 --> 0:14:54.440 and that's where our focus is. 0:14:54.520 --> 0:14:57.240 How closely do you work with those retailers? I mean, 0:14:57.240 --> 0:15:00.520 I saw you had last over the holiday in the 0:15:00.640 --> 0:15:04.120 US something with urban outfitters kind of a pop up there. 0:15:04.160 --> 0:15:08.000 Are you trying to be more integrated into what your 0:15:08.000 --> 0:15:09.520 displays look like in those YEA. 0:15:10.400 --> 0:15:13.560 The elevation piece that I talk about is being proud 0:15:13.600 --> 0:15:16.640 of where our brand shows up wherever. That is again 0:15:16.800 --> 0:15:20.160 digital physical owner partner, And it's not just the assortment, 0:15:20.240 --> 0:15:23.880 it is the presentation of that assortment because at the 0:15:23.920 --> 0:15:26.760 point of sale, when the consumers interacting with our brand, 0:15:27.280 --> 0:15:30.120 it does it can't just be about the product. It 0:15:30.120 --> 0:15:32.280 has to be about the stories that we tell and 0:15:32.360 --> 0:15:35.480 the beauty of it. So there's no question that we're 0:15:35.480 --> 0:15:39.560 putting an emphasis on really elevating the premium nature. 0:15:39.600 --> 0:15:41.920 Of our brands in terms of being able to preserve 0:15:42.000 --> 0:15:45.520 or that premium nature. I know you've pulled some inventory, yeah, 0:15:45.520 --> 0:15:47.640 but you're trying to right size that. How much further 0:15:47.680 --> 0:15:50.960 do you have to go to get inventory levels back 0:15:50.960 --> 0:15:53.880 to a situation that are going to not cost you 0:15:53.960 --> 0:15:56.400 any money or any additional money, but at the same 0:15:56.440 --> 0:15:57.960 time puts you on a better path with the r 0:15:58.000 --> 0:15:58.520 ZERU supply. 0:15:58.520 --> 0:15:59.920 But you know, we touched on it last quarter. 0:16:00.160 --> 0:16:02.200 We're feeling good about you know, we talk about the 0:16:02.200 --> 0:16:04.880 big three, the Air Force one, the AJA one and 0:16:04.920 --> 0:16:08.160 the Dunk Air Force one. Frankly is back to growth. 0:16:08.200 --> 0:16:10.720 So we feel good about the work that the teams 0:16:10.760 --> 0:16:14.480 are done. And more importantly than clean up, because I'm 0:16:14.800 --> 0:16:16.760 like you, I'm tired of talking about the I'm more 0:16:16.760 --> 0:16:19.480 about the innovation. What I'm most proud of is the 0:16:19.840 --> 0:16:22.960 growth that we're seeing and running trainings coming behind that. 0:16:23.040 --> 0:16:25.720 You'll see it in football, global football or soccer. As 0:16:25.720 --> 0:16:27.600 we roll into on. 0:16:27.600 --> 0:16:30.680 The conference call, that that soccer global football, if you will, 0:16:31.000 --> 0:16:34.000 was more probably further along than some of the other 0:16:34.040 --> 0:16:34.920 sports that you're involved. 0:16:35.000 --> 0:16:38.120 Yeah, and again we talked about it earlier, those tempole moments. 0:16:38.280 --> 0:16:40.640 The World Cup is a tempole pole moment and so 0:16:41.160 --> 0:16:44.200 our cross functional team on that that comes to there, 0:16:44.520 --> 0:16:47.160 comes to work every single day and focuses on the 0:16:47.200 --> 0:16:51.560 game of football. That team hustled to make certain when 0:16:51.600 --> 0:16:52.840 we launch. 0:16:53.160 --> 0:16:55.960 For the World Cup. From Football our Boots. 0:16:56.560 --> 0:17:00.160 We have three really silos, three different types of play 0:17:00.840 --> 0:17:02.720 with innovation each of those silos. 0:17:02.880 --> 0:17:04.960 And it gets to this idea too of also curation. 0:17:05.040 --> 0:17:06.760 I mean, it's one thing to offer a wide variety 0:17:06.760 --> 0:17:08.639 of things, but in terms of in your retail channels, 0:17:08.720 --> 0:17:10.600 how much more curation are we going to see so 0:17:10.640 --> 0:17:12.919 that you know, people kind of can be able to 0:17:13.040 --> 0:17:14.280 zero in on exactly. 0:17:14.000 --> 0:17:14.320 What they are. 0:17:14.400 --> 0:17:16.840 Yeah, when you think about that marketplace that we talked 0:17:16.840 --> 0:17:21.119 about earlier, Yeah, I think there's no question that we 0:17:21.240 --> 0:17:24.760 have to be thoughtful about the specific consumers that shop 0:17:24.800 --> 0:17:30.320 in each of the stores or retail partners, and being 0:17:30.359 --> 0:17:32.760 thoughtful about the assortments, and we have to be much 0:17:32.800 --> 0:17:37.040 more curated so that we create the differentiation in the 0:17:37.080 --> 0:17:40.880 marketplace which allows each of our retail partners and ourselves 0:17:41.760 --> 0:17:43.520 to drive the revenue profits that we need. 0:17:43.600 --> 0:17:44.880 And so there's no question. 0:17:44.680 --> 0:17:47.800 We're going to be much more thoughtful and curated in 0:17:47.840 --> 0:17:49.280 the way we think about the marketplace. 0:17:49.359 --> 0:17:51.800 And speaking of curation, I know North America is doing great. 0:17:51.880 --> 0:17:54.000 There's still a lot of concerns about the contraction we're 0:17:54.000 --> 0:17:57.600 seeing in China. Some of the criticism has been just 0:17:57.640 --> 0:17:59.720 the model. The business model in China overall, with their 0:17:59.760 --> 0:18:02.280 guards to apparel, is a little bit different. There was 0:18:02.320 --> 0:18:04.920 also this idea that Nike stores weren't as cur rated 0:18:05.240 --> 0:18:08.000 as what customers there wanted. When do we start to 0:18:08.040 --> 0:18:09.720 see a bit more improvement there? I know, you've got 0:18:09.760 --> 0:18:10.080 a new. 0:18:09.960 --> 0:18:11.280 Head of Asia right now. Yeah, we do have a 0:18:11.320 --> 0:18:11.920 new head of Asia. 0:18:11.920 --> 0:18:14.840 I'm excited about Kathy Sparks and what she brings to 0:18:15.200 --> 0:18:17.520 the market. So over twenty five years of experienced deep 0:18:17.560 --> 0:18:22.280 retail consumer, she understands our brands and our culture. So 0:18:22.440 --> 0:18:24.919 excited about what she and the team because it's going 0:18:24.960 --> 0:18:27.440 to take the entire team to do. As you think 0:18:27.440 --> 0:18:31.240 about China, we have to lead with sport and innovation 0:18:31.760 --> 0:18:34.320 and that is the focus as we move forward, whether 0:18:34.320 --> 0:18:38.159 it's through running, basketball is obviously big there, football, tennis 0:18:38.240 --> 0:18:41.480 is on the rise, and so you'll see us reposition 0:18:41.600 --> 0:18:44.240