25 Jun, 2020 Length: 01: 01:25 Download Embed Share. Your line is open. We will be agile and resilient, because we understand that each market recovery will not be linear. I’ll now turn the call over to Nike, Inc.’s President and CEO, John Donahoe. Your next question is from Jay Sole with UBS. Hey. Nike Earnings, Revenue Miss in Q4. We committed to provide pay continuity for all of our teammates, even while our facilities remain closed or had altered schedules, and we have maintained this important investment over the past 12 weeks. Good afternoon everyone. But as I said in my prepared remarks, we expect to see sequential improvement relative to what we delivered in Q4 as we move quarter-by-quarter through the first half. We expect revenue in the first half of the year to be below prior-year levels, but less of a decline than experienced in Q4 as we continue to reopen stores and fuel our digital business. Contents: Prepared Remarks; Questions and Answers; Call Participants; Prepared Remarks: Operator. Just walk us through some of the major initiatives in terms of getting back there on the supply and demand piece of this, please? Finally, in our APLA geography, Q4 revenue declined 39% on a currency-neutral basis. I had a chance to see this firsthand during my first weeks at Nike in China. As we look at opportunities to build deeper and more meaningful relationships with consumers, our vision is to create a clear and connected digital marketplace to match. Physical retail traffic remains below prior year and is being offset by higher rates of conversion due to promotional activity as well as significant shifts to owned and partner digital. The stats are just — I think I listed a few of my remarks and Matt did, but NCC weekly active users which is a really important metric, because someone may only buy footwear and apparel a few times a year, but engaging with us each week maybe even each day brings Nike into their lives and so we grew weekly active users triple digits in the quarter, 25 million workouts with women alone in Q4 and that which is — and so we think the activity levels and the engagement’s growing. I also want to congratulate Matt on becoming our CFO and express how deeply confident I am in Nike’s financial management under Matt’s leadership. And in particular, we said our first and primary principle was to get inventory clean in the marketplace as fast as we possibly can, and so we now feel confident based upon the actions that we’ve taken that we will have inventory rightsized and clean by Q2 or in Q2, and in China, as I referenced, given they faced the pandemic a little bit earlier, they’re going to clear and come out of the situation from an inventory perspective by the end of June. Great. We're pursuing even further separation. I also want to take a moment to welcome Andy Muir to her first call as she expands her responsibilities and provides leadership over Investor Relations. Great. Image source: The Motley Fool. The underlying value proposition of Nike’s Consumer Direct Offense is that the consumer adoption of digital across all aspects of life now provides Nike with an opportunity to create deeper, more direct consumer relationships at-scale, without disintermediation. We have executed with empathy and decisiveness. I think you also asked about bad debt, so bad debt fits in SG&A, it doesn’t fit in margin, and it was $180 million in the quarter. Thanks, and thanks for taking my question. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. And by the way, that’s a scale gain and that’s going to allow us to build scale that others won’t be able to match and we want to share that scale with our wholesale partners and others as we embrace this, and so it was really great to see that team and they’ve done a phenomenal job as their counter parts in Europe and in China. With these strengths in mind, we plan to accelerate our focus and investment on the key areas that put an even sharper point on our highest-growth opportunities. As I mentioned in my prepared remarks, the shift-to-digital is financially accretive to Nike and we believe that this will be an enabler for us to sustain that momentum longer term. They don't necessarily just want to buy digitally and have it shipped from home. And I think, Matt, you referenced the power of data, right, the power of that Celect acquisition where advanced analytics and data -- demand sensing capabilities can allow us to get the right product as close to the consumer in the right time which offers enormous efficiency opportunities, right? In a funny way, I would characterize this investment in these new doors as continued investment in our digital future, and here’s — we look at everything through the eyes of the consumer. To acknowledge the environment in the reports filed with the SEC, including strong double-digit growth in Q4 greater... 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