Home » Nike Inc. (NYSE:NKE) Reports Fiscal 2014 First Quarter Results Earnings Call (Transcript)

Nike Inc. (NYSE:NKE) Reports Fiscal 2014 First Quarter Results Earnings Call (Transcript)

Matthew Boss – Analyst, JPMorgan

Okay. Was there any change from last quarter?

Mark Parker – President and CEO

I think the conversation was about line item guidance and I think that’s where I’d like to stay on the guidance.

Kelley Hall – VP, Treasury & IR

Matthew, feel free to follow up with the IR team. We’ll help walk you through it.

Matthew Boss – Analyst, JPMorgan

Okay, great.

Kelley Hall – VP, Treasury & IR

Operator, we have time for one more question.


And your last question comes from Jim Duffy with Stifel.

Jim Duffy – Analyst, Stifel Nicolaus

I’m interested in some more commentary on the strategy to continue to take prices higher. Have you seen any evidence of resistance to price, and has the reception to price been consistent across regions?

Trevor Edwards – President, NIKE Brand

I think we’re looking at it in sort of really two ways right. One is sort of making sure that we have great price value in the marketplace. So we always want to make sure that each season we go in and we’re evaluating the pricing that we’re currently setting to make sure that we actually are taking the opportunities when they’re there to go back to the right price. At the same time what we’re also doing is driving the change in the mix of our business. So you will see us really drive a lot of premium concepts certainly we’ve seen that across the board. And we’re certainly seeing really not a lot of resistance to that at all. In fact, we’re seeing tremendous growth around our premium businesses. So as Mark talked about for us it’s really the complete offense, making sure that we are competitive on [the one] side, but also taking price when the opportunity prevails itself.

Jim Duffy – Analyst, Stifel Nicolaus

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And then Don, some of the increased FX headwinds seem to be from emerging market currencies. Does that make it more costly or difficult to hedge against the exposure?

Don Blair – EVP & CFO

Well, you are exactly right. And in fact, for many of those currencies it’s really not very economical to hedge them, but over the last few years we’ve taken a number of steps to reduce our overall exposure. We have built an internal trading company. We have really done some adjustments to how we source. And so we think we’ve done some things that have reduced the exposure. But the currencies like the real, the Argentine peso, the Russian ruble, there’s not great tools out there to economically hedge them. So to some degree, we are exposed at some level for those currencies.

And what we do is we really manage our overall P&L equation across the whole portfolio. So as we talked about these adjustments, they are there, but we’re not so exposed to any one currency and we’ve got lots of levers to pull across the portfolio to continue to deliver consistent growth.

Kelley Hall – VP, Treasury & IR

Thanks everyone for joining us. And we’ll talk to you next quarter.


And this concludes today’s conference call. You may now disconnect.

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