PREPARED REMARKS / UNOFFICIAL TRANSCRIPT - Q2FY22 NIKE, Inc.

December 20, 2021

The following material represents prepared remarks for NIKE, Inc.'s earning conference call and is not an official transcript. These remarks are provided only for reference purposes until an official transcript is made available. These prepared remarks do not reflect questions asked by participants in the conference call or responses from NIKE, Inc. management, and information presented by NIKE, Inc. during the conference call may differ materially from these prepared remarks. Information contained in these remarks was current only as of the date of the conference call and may have subsequently changed materially. NIKE, Inc. does not update or delete outdated information contained in these prepared remarks and disclaims any obligation to do so.

Operator:

Good afternoon, everyone. Welcome to NIKE, Inc.'s fiscal 2022 second quarter conference call. For those who want to reference today's press release you'll find it at http://investors.nike.com. Leading today's call is Paul Trussell, VP of Investor Relations and Strategic Finance. Before I turn the call over to Mr. Trussell, let me remind you that participants on this call will make forward-looking statements based on current expectations and those statements are subject to certain risks and uncertainties that could cause actual results to differ materially. These risks and uncertainties are detailed in the reports filed with the SEC including the annual report filed on Form 10-K.

Some forward-looking statements may concern expectations of future revenue growth or gross margin. In addition, participants may discuss non-GAAP financial measures, including references to constant-dollar revenue. References to constant-dollar revenue are intended to provide context as to the performance of the business eliminating foreign exchange fluctuations. Participants may also make references to other non-public financial and statistical information and non-GAAP financial measures. To the extent non-public financial and statistical information is discussed, presentations of comparable GAAP measures and quantitative reconciliations will be made available at NIKE's website, http://investors.nike.com.

Now I would like to turn the call over to Paul Trussell.

Paul Trussell:

Thank you, operator.

Hello everyone and thank you for joining us today to discuss NIKE, Inc.'s fiscal 2022 second quarter results.

As the operator indicated, participants on today's call may discuss non-GAAP financial measures. You will find the appropriate reconciliations in our press release, which was issued about an hour ago, or at our website: investors.nike.com.

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PREPARED REMARKS / UNOFFICIAL TRANSCRIPT - Q2FY22 NIKE, Inc.

December 20, 2021

The following material represents prepared remarks for NIKE, Inc.'s earning conference call and is not an official transcript. These remarks are provided only for reference purposes until an official transcript is made available. These prepared remarks do not reflect questions asked by participants in the conference call or responses from NIKE, Inc. management, and information presented by NIKE, Inc. during the conference call may differ materially from these prepared remarks. Information contained in these remarks was current only as of the date of the conference call and may have subsequently changed materially. NIKE, Inc. does not update or delete outdated information contained in these prepared remarks and disclaims any obligation to do so.

Joining us on today's call will be NIKE, Inc. President and CEO John Donahoe, and our Chief Financial Officer, Matt Friend.

Following their prepared remarks, we will take your questions. We would like to allow as many of you to ask questions as possible in our allotted time. So, we would appreciate you limiting your initial questions to one. Thank you for your cooperation on this.

I'll now turn the call over to NIKE, Inc. President and CEO John Donahoe.

John Donahoe:

Thanks, Paul, and hello and Happy Holidays to everyone on today's call.

Before I get into our quarterly performance, I want to take a moment to acknowledge the recent passing of Virgil Abloh. Since 2016, Virgil has been a beloved member of the Nike, Jordan and Converse family. He was a brilliant creative force who shared a passion for challenging the status quo and pushing forward a new vision, while inspiring multiple generations along the way. But what stood out to me personally about Virgil, was his humility and humanity. We offer our condolences to the many who shared a connection with Virgil. He will be missed greatly.

As we look at Q2, the creativity and resilience of our entire NIKE, Inc. team helped deliver another strong quarter. The results we delivered offer continued proof that our strategy is working, even as we execute through global macroeconomic constraints.

Whenever there's turbulence, I always go back to the fundamentals. For Nike, that means putting the consumer at the center and leveraging our long-term competitive advantages…which include

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PREPARED REMARKS / UNOFFICIAL TRANSCRIPT - Q2FY22 NIKE, Inc.

December 20, 2021

The following material represents prepared remarks for NIKE, Inc.'s earning conference call and is not an official transcript. These remarks are provided only for reference purposes until an official transcript is made available. These prepared remarks do not reflect questions asked by participants in the conference call or responses from NIKE, Inc. management, and information presented by NIKE, Inc. during the conference call may differ materially from these prepared remarks. Information contained in these remarks was current only as of the date of the conference call and may have subsequently changed materially. NIKE, Inc. does not update or delete outdated information contained in these prepared remarks and disclaims any obligation to do so.

  • A culture deeply rooted in innovation
  • A brand that deeply connects with consumers, fueled by compelling storytelling, and
  • An unmatched sports marketing portfolio

And we believe a fourth emerging competitive advantage for us is Digital, as we are one of the few brands that can directly connect with and serve consumers at scale.

We also continue to benefit from structural tailwinds that have accelerated during the pandemic that reflect

  • a larger movement of health and fitness that is taking place around the world,
  • consumers' desire to wear athletic footwear and apparel in all moments of their lives, and an
  • expanding definition of sport,

And last, the fundamental shift in consumer behavior toward digital plays to our increasing digital advantage.

As I've said before, challenges create opportunity for strong brands to get stronger. That's what's happening here. And we are now in a much stronger competitive position today than we were 18 months ago. And that trend continues.

We are seeing this strength come to life this holiday season. Our brands' deep connection with the consumer is driving strong holiday sales, most notably with North

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PREPARED REMARKS / UNOFFICIAL TRANSCRIPT - Q2FY22 NIKE, Inc.

December 20, 2021

The following material represents prepared remarks for NIKE, Inc.'s earning conference call and is not an official transcript. These remarks are provided only for reference purposes until an official transcript is made available. These prepared remarks do not reflect questions asked by participants in the conference call or responses from NIKE, Inc. management, and information presented by NIKE, Inc. during the conference call may differ materially from these prepared remarks. Information contained in these remarks was current only as of the date of the conference call and may have subsequently changed materially. NIKE, Inc. does not update or delete outdated information contained in these prepared remarks and disclaims any obligation to do so.

America Digital leading the industry over Black Friday week, with close to 40 percent growth.

And our Singles Day performance showcased our brand strength in greater china as we added 13 million new members, and Nike was again the number one sport brand on TMall.

More broadly, this holiday season has shown the power of our digital transformation across the globe. Digital is the engine driving our Consumer Direct Acceleration strategy.

Now Q2 was another incredible quarter for sport led by our deep roster of athletes and teams. Let me just touch on a few of the highlights.

Following the exciting end of the WNBA and MLB seasons, the energy around sport continues with the NBA, NFL, European soccer and upcoming college football bowl season, where 16 of the top 20 teams and three out of the four Playoff participants are Nike teams. When these leagues are as exciting as they are today, our business benefits.

Nike athletes continue to lead the way across the sports landscape, highlighted by Barcelona captain Alexia Putellas, who won the Ballon d'Or as the best female footballer in 2021. We were also thrilled to see Marcus Rashford receive his MBE from Prince William last month, an honor very well deserved for his work to support vulnerable children during the pandemic. And congratulations to Cristiano Ronaldo for reaching yet another remarkable milestone by becoming the first player in recorded history to score 800 career goals in official matches.

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PREPARED REMARKS / UNOFFICIAL TRANSCRIPT - Q2FY22 NIKE, Inc.

December 20, 2021

The following material represents prepared remarks for NIKE, Inc.'s earning conference call and is not an official transcript. These remarks are provided only for reference purposes until an official transcript is made available. These prepared remarks do not reflect questions asked by participants in the conference call or responses from NIKE, Inc. management, and information presented by NIKE, Inc. during the conference call may differ materially from these prepared remarks. Information contained in these remarks was current only as of the date of the conference call and may have subsequently changed materially. NIKE, Inc. does not update or delete outdated information contained in these prepared remarks and disclaims any obligation to do so.

And I also have to give a special shout-out to Shalane Flanagan who was wearing the Nike Air Zoom Alphafly Next%, when she completed the six World Marathon Majors in six weeks…running each of them in under two hours and forty-seven minutes. This achievement offers all of us a reminder of the joy and unrelenting spirit of sport.

As we deliver against our Consumer Direct Acceleration Strategy, we continue to drive separation as the most innovative sports brand by delivering a constant pipeline of new products that sets the standard. What's more, we're aligning against our key growth drivers of Women's, Jordan and Apparel, as well as to our commitments to sustainability.

In Women's,we launched a brand-new shoe designed specifically for dancers… The Nike Air Sesh, was designed by Tinker Hatfield, in collaboration with professional dancers and choreographers prioritizes both style and performance with a mid-cut leather upper and Cushion foam under the foot. We launched the Air Sesh for Nike members first, with a wider release to take place soon.

This new product comes as we welcome some of the world's best athletes to our global roster, including dance choreographer Parris Goebel and fitness athlete Tunde Oyeneyin. As we continue to accelerate our strategy and fuel the expanded definition of sport, we are able to more deeply connect with women and create an even sharper focus.

And this quarter also saw the debut collection from the Serena Williams Design Crew, our apprenticeship program that advances diversity in design. The Crew connects innovation, design and purpose in a uniquely powerful way, fueled by our commitment to the full spectrum of sport for women, across performance and lifestyle. Serena joined

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Nike Inc. published this content on 21 December 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 December 2021 00:19:02 UTC.