CLAIM #46334 · Nike Inc (NKE) · 2024Q1 earnings call · Sep 28, 2023 · due May 31, 2024
“Our reported numbers in China are going to be challenging for the next couple of quarters because of foreign exchange headwinds.”
Matt Friend · CFO
In context
“. I think the last part of your question was on China and profitability. What I would just say is that we know from a long history of managing this business that when you have a healthy marketplace and you're driving full price sales and you are driving productivity in your retail formats, you're -- you've created the environment that's ripe to drive profitability improvement. And as we look at the momentum that we're seeing in Greater China, another quarter of double-digit growth, we're increasingly confident that we're going to begin to rebuild towards higher profitability in that marketplace. That's on the product and marketplace side. And then also I referenced an example where we're lowering our supply chain costs in Greater China. And so we feel we feel quite good with that as well. Our reported numbers in China are going to be challenging for the next couple of quarters because of foreign exchange headwinds. And so we'll continue to try to highlight the opportunities and what we're driving from a profitability perspective, but that's one of the reasons why our EBIT was down this quarter in Greater China as foreign exchange headwinds as a result of the strength of the U.S. dollar, definitely has created a bit of pressure in the short term. But that's - we're focused on what we can control and continuing to drive a healthy, profitable business in that market and believe the fundamentals for long-term growth and profitability are strong for NIKE. Operator: We'll go next to Aneesha Sherman, Bernstein. Aneesha Sherman: Thank you. So as a result of your direct-to-consumer strategy, you've shifted, I guess, more than 20 points of sales mix from Wholesale to NIKE Digital over the last seven or so yea”
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SEC filings for NKE ↗ · Claim quote is verbatim from the 2024Q1 earnings call.