Nike held its Q1 2010 Earnings Conference Call this past Tuesday. Nike CEO Mark Parker talked about the Swoosh-shaped economic recovery, the strength of the Converse brand, the continued push into China, and “off the grid” opportunities that sneakerheads love so dearly…
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Notes on the Nike Q1 2010 Earnings Conference Call:
- CEO Mark Parker says the Basketball Category is a good example of Nike exhibiting a “complete offense”. Attacking the business with 3 key brands: Nike, Jordan Brand, and Converse. It will allow hoops consumers an entry level at every price point to the Nike brand
- Converse delivers most profitable first quarter ever, up 13% over last year. Grew revenue by 10%
- Parker talked about “customization” as a key tool for the Nike brand – quickstrike opportunities, increased development of user-driven and generated products that allow consumers to personalize product in real-time, and fast reaction times to in-the-moment sports events. Parker says these “off the grid” initiatives shows how hungry and opportunistic the company is
- China growth market and multiple recent visits in the last few years by Nike athletes Lebron James, Kobe Bryant, and Chris Paul there
- Lebron and Kobe lines continue to lead Nike Basketball and Jordan Brand continues to post impressive results. The combined basketball business delivered high-single digit revenue gains over last year
- Action sports the other big story within the company. Action Sports posted biggest category percentage gain in Q1 at 25%. The company has a three-brand action sports strategy that combines Nike, Converse, and Hurley
- Swoosh-shaped recovery which Parker mentioned in the previous Nike Earnings Call.
- Overall Running business down slightly, but high end products like the new Nike Lunarglide having good sell-through
- Basketball silhouette and business strengthening
- “Brand strength of Converse has been as strong as it’s ever been.” Converse is the 3rd largest brand for Nike, has strong Casual athletic sector, and lots of upside for Converse in China and Europe. The company remains bullish on the brand’s strength. Converse U.S. business was up 16%.
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