“But as we look forward, we believe that more newness, more freshness, products that are more connected to stories that are relevant to consumers, should give us the ability on a structural basis, to continue to expand our profitability.”

In context

“pricing power of the NIKE brand and the markdown opportunities that you see as you build into this new multi-year innovation cycle. Are there any near-term or medium-term offsets that we should contemplate as you work through franchise management and the current macro? And how are you thinking about the most important drivers of operating margin expansion into next fiscal year? Thank you. John Donahoe: Yes, let me start. By talking about pricing power, one of the biggest benefits to a strong brand, an innovative brand, a brand that's continuing to bring freshness and newness to the consumer, is pricing power. And over the last couple years, given our brand strength, we've been able to implement strategic pricing in order to be able to offset, some of the headwinds that we've been facing. But as we look forward, we believe that more newness, more freshness, products that are more connected to stories that are relevant to consumers, should give us the ability on a structural basis, to continue to expand our profitability. And the point, I was trying to make in response to Matt's question is that when the brand is strong, the biggest driver of growth and margin expansion is strong consumer demand for the products we have. And high levels of full price realization. And that ultimately is the fundamental as we carry forward. In the near term, one of the headwinds that we're going to see is that not surprisingly, our digital business carries a higher mix of the biggest franchises that consumers love. And so, as we manage the supply of our larger franchises, we do expect that there will be a near term channel mix headwind, from transitioning our product portfolio. But we view that as being a near term factor, because ultimately for NIKE to grow at the rates that we aspire to grow to, we have to grow units acros”