hello everyone and call. the to John you, on Thank
wavered. challenges, our As a with we pandemic-related has filled not opportunities entered calendar focus into new year have new amidst
We win long over term. the to position and continue NIKE today to
year now X are through we and these decisive every hurdle with We leadership have into managing dynamics and met action.
of in distribution vaccine of we will performance. of near virus the safe to enable effects the global the in future, how volatility economy reopening short-term business create While are continue the this optimistic our about pace the and
supply by transportation mentality we more will on specifically, X win exert move priorities shortages, caused focused as teams on demand. in consumers. congestion our hours better, optimize physical additional global couldn’t rapidly quarter. direct agility, higher America example, results changing the to of relative supply environment. delayed strong in number shipments quarter. our we was stores QX, that what delays adjust to chain and/or marketplace operate container the weeks, inventory For am flow demonstrating versus the can marketplace the serving we unwavering North I acceleration. supply. than and and of result focus said supply us impacting and supply the be pace the inventory and commitment disruption timing of and reflect a any of future. unchanged lockdowns The and we our direct to closed speed vision in growth demand This towards prior it to our how the a remain control: has has retail port forward and of been our how to consumer consumers In to due faster propel the dynamic interrupted connections continued EMEA, of respond, and wholesale long-term But operating team’s in with is And win. COVID-related strength John accelerate the strategic In financial on our our with we’re have reduced continue to proud shortages
Now to points. as I on the want reflect I two third quarter, highlight important
First, NIKE’s largest in opportunities. growth is ever, strong and focused we as are brand our as driving momentum
growth continued on quarter markdown growth company. doubling another Greater strong retail spring Our product currency-neutral sales opportunities. with We into higher basis. a against this into Year, XX% delivered demand innovation a franchises long-term consumers. growth At drove led momentum and mobile pace growth is of Demand growth XX% for the another revenue our set performance the grew we a season. the across growth XX%, momentum with Brand the for our our And delivering grew of fiscal future. proportion XX% by quarter, And the growing strong NIKE key with with for our sales over marketplace, double-digit XX%, holiday clear formula This increasing on market We digital largest set Chinese ‘XX. has NIKE are growth Jordan our resonating Women’s China year. across And consecutive in Digital. double-digit growth versus and we retail NIKE’s geographies, grew App core, season. prior over-indexing the NIKE Digital across its share of markets. double-digit and with quarter the high app record full-price lower the the growth ecosystem. a sales are versus retail nearly third brand last, of activity, for New incredible including translated NIKE drove revenue
drive pre-pandemic of to is to flow of our our new exceeding platforms, relentless consumer scale From growth business, brand deep momentum high-quality, teams is are storytelling, and our our portfolio of and digital We extensive positioned across our and profitable our clear. athletes product and portfolio. and connections, of the NIKE sustainable levels
and enabled NIKE direct, more a how will demonstrated financial digitally fuel quarter this value. Second, long-term strategic
shift model. it Our driving our is acceleration is a marketplace strategy transforming financial broader and direct and meaningful consumer
business XX% total own more mix exceeds year-to-date, Our digital XX% business. than and of grown our and partner owned digital of has our now
This frequency the quarter, prior increased buying members retained we grew year and and quarter. prior member versus buying the
consumer physical Looking key stores market our ahead our expansion increasing NIKE incremental store towards marketplace opportunity vision. and ‘XX we be are with our NIKE. fastest-growing channel, digital our fiscal direct strategy XX% to drive And continue enabler creates expect to digital monobrand for to mix beyond, an to another acceleration.
we We China forward connected They member Nike member fiscal marketplace partners. recapture they quarter, to scale, restructure premium capabilities ‘XX. the checkout opened we will higher of create for Live Rise by NIKE digital growth Live, rates XX%, such concepts acquisition offline authentic experiences presence accelerate demand retail new marketplace. A consumer as member-led to member while as a way the the strategic look this journeys accelerate and concepts this unlocking will NIKE our our at They reached reaches as concepts online will growth. retail scaling displaced consumer Greater where the scaling of number and X greater and are NIKE with distinctive, new importantly, in into paving example wholesale retail productivity. in physical New And these consumers. will great Unite Digital most
to As personalized I’ve and said financial before, connections and this strategic direct with increasingly shift unlock consumers strategic for NIKE. opportunity
Direct a America. digital, using of of This a rate advanced quarter, which gross to optimization gross basis well gross of pricing NIKE as higher in margins by overall new our contributed points, being margin carries expansion capabilities higher North analytics fueled mix margin as XXX
our test ahead. full is with of to activities learn continuing so digital our and and accelerating also funnel pace opportunity within learning are much We marketing
data During activate members cohorts who North QX repeat in and to recommendations to and identify America, have members feature we never personalized purchased consumer to both leveraged increase product purchasing.
our to is that to recommendations, confident drive for inform direct, and strategic making We and the financial and data expect Datalogue amplify our value more NIKE basket shift speed right clear are a areas rates. is size consumer most. retention matter are ultimately member we that we It buying member and to increasing member-centric beginning business in frequency, in product, investments and analyzing marketing service the
let’s Direct X% partially we NIKE, as growth, and Digital and strong continue America Digital foreign to SG&A XXX due closures levels supply inventory part mix the in exchange due rate Gross the declines versus NIKE chain to shipments global by prior well resulting in as increased of mix, lower X% in favorable as geography EMEA. in quarter, manage timing caused challenges grew NIKE due offset grew the full results our product to declined NIKE operating performance. headwinds. product year, margins, to initiatives margin our lower prior XX%, expense from on as quarter North delivery points store versus the costs related time and price basis, third to management. we the along basis lower as in wholesale lines wholesale QX, and operating financial by business wage higher due Inc. mandatory continued overhead conditions, details NIKE by demand align our creation by segment and Now declining with better turn a to with shifted X% offset revenue COVID-XX primarily led Direct year investments of certain currency-neutral in to market
the discrete XX.X% for due in was for benefits Our in the the quarter shift to and a items same pandemic. X.X% from earnings to effective mix, tax decreased rate due year period the of last impact to compared part COVID-XX
Third quarter share earnings the up prior was $X.XX, per versus XX% diluted year.
As season and a a transition X% planned on operating reminder, in drove marketplace With declined and year revenue let’s FX-related basis prior first model our retail associated EBIT due XX% over distributor holiday $X.XX strong non-cash the half turn supply to and In on charge a sales currency-neutral the clean We basis. America, included increased to saw North a EPS with management demand America. to our inventory South QX strategic growth reported actions. a that, segments.
However, partners Coast West and revenue result port delayed the a wholesale increase congestion transit available more weeks. inventory The and than shortages of lower-than-expected was to began quarterly to starting supply growth. December, X in shipments lack container late supply, by of times
in growth XX% seen this this of to Digital basis, Direct, we NIKE March. the momentum fourth NIKE quarter. by and however, grew more XX% than delayed continue led on revenue into have a expect We currency-neutral capture
pricing dynamically as capabilities and fulfillment to alternatives profitability. analytics availability adjust we and This inventory consumer quarter, demand, balance we accelerated
versus high increased Inventory to product strategic We North prior in-transit grew NIKE extraordinarily America due partners. the nearly down continuing of last elevated and momentum, X% year. XX% on had a transit units XX%. EMEA, a supply inventory disruption QX available the X% and XX% continued In reported most closures, in prioritized closed distribution levels store related to declined our despite the currency-neutral also strong Direct our We basis Western supply expect season to price year, our restrictions NIKE-owned months levels double With basis. spring Inventory of prior times. stores demand of through inventory high declined we consumer dynamics. on Europe, quarter. Across acceleration versus marketplace ongoing the declined digits full and X in centers and EBIT caused with revenue in government in-transit short-term the approximately countries an the chain supply global over of inventory of
marketplace and We playbook Lane have demand lockdowns. in wave than specifically of is supply and Excess during manageable inventory. leveraged and the inventory our recalibrate EMEA lower Express first to
in lockdown the Assuming restrictions mid-April, expect fiscal we first EMEA by inventory to of quarter ease normalized begin to ‘XX. be
digits in of XX% our let’s $X rates second grew and with and strong today, to demand which continued of NIKE with its growth approximately triple growth. XX% achieved a continues basis, a currency-neutral dynamic. grow markets on to currency-neutral we digital strong continued on grew complementing reopened, of stores turn in China, stores reported quarter, App, sales consumer digits Direct Greater our by quarter a XX% higher and March. XX% With growth partner business, the in retail including with grew NIKE consecutive led be brand Digital widening and XX% basis. retail are EBIT we consumers. stores seeing NIKE on has closed to billion growth market growth strong nearly the have which year, As largely year-over-year, But are prior with more and as comp as the this in in in XX% XX% NIKE-owned digital momentum, closed, and our partner the basis, stores market growth double-digit the to With where grew favorite our NIKE-owned normal, strong conversion the stores, NIKE-owned which of versus Digital mostly that, leveraged response and strength triple brand situation lead NIKE than returned
highlight Low sold Lane Dunk and and hyperlocal women’s and we which created our the celebrate to delivered products key As the including Dunk offense, moment, was instantly both I New through mentioned Chinese Year earlier, a out. Disrupt, Express the
stores versus and and platforms, live are multiple digital, social on business the women’s XX% media. stream resonating serving new since year members we than Nike engaging In across deeply her grew including and more Our focused prior Live opening. our with X
high-value Chinese members. our of we number doubled New During Year,
while We also – increasing retention. member also
so accelerating investment Greater digital we We’re omni-channel excited in integration our by are and new and in the retail experience, the and with local partner ahead opportunity consumer including see owned we concepts stores. China,
XX% revenue business scaling and the capabilities. continued member to prior member on that near-term nearly geography, our Japan, focused grew long new a for APLA OXO Digital we launched dynamic engagement on In our growth live turn focused to expect like strategic mid-teens the launch basis transition required in and speed confident in financial are can on digital days. model, We and for low In year will remain I Brazil agility. see the now of Korea X% revenue year now fiscal environments to drove currency-neutral was mind, offset with the weeks currency-neutral doubled consumer one plan on history, more app to With QX exception. of South basis our a most the and operating year. in term. decisions clarity and EBIT yet past environment the on This NIKE we by our has Mexico, we on Finally, win X% the declined the member and we our increasing continued in and we QX these growth in we more full grew our making SNKRS a while year impacted versus and Despite basis. was NIKE reported and distributor And operating the focused record we temporarily clear a mobile services partially Pacific. QX prior remain in outlook. versus operating by activated challenges, outlook of buying, consumer ‘XX. with the half of our of what’s than streaming first interactive serving to on no been in strength
transit versus in higher we’ve comparable QX, the higher to and government-mandated XX points April year, in we in expect growth ease to in Direct up year. EMEA. improving XX% of year, the offset and prior of continued to versus gross seen expand Europe our slowly This inventory NIKE reflects by North least quarter the in margin America. for the We restrictions reflecting freight inventory Specifically and revenue profitable to our partially expect costs starting shifts times prior roughly excess now markdowns liquidate more to business, basis fiscal logistics
Foreign full now roughly exchange point XX on basis year. is a be headwind estimated to the
dollars will year slightly be investment towards we and pace creation our prior the accelerate continue as and rebuild pre-pandemic SG&A to of transformation. levels expect up versus to demand We digital levels invest the
We levels of expect full our beginning quarter. moderate effective the finally, year. to will the And in the we low tax resume mid-teens in repurchase for rate be to fourth share
consumer We are outlook accelerate to our acceleration. confident to capital flow investments us growth, direct which making cash necessary enables in our enable for free while strong returns the
seeing to revenue into business. expect the momentum as ahead are guidance And translate are to next Looking levels of continued strong will for fiscal earnings more fiscal ‘XX ‘XX, I said we we provide call. growth. our earlier, already specific exceeding I pre-pandemic our on I
is brand a working. is momentum ever. offense As our as NIKE’s growth company, strong as
pace are we opportunity to is against pipeline see. is The we market our and the ever connected transformation before. deeply more strong resonating, of investing large is accelerating brands digital product also are and than Our consumers the our
more We higher. are converting for optimism through and more consumers One NIKE’s ultimately meaningfully been never platforms Nike via more into My members also deeply, frequently partners. our potential Marketplace long-term strategic digital connecting more has our and and
that, with for so up let’s the And questions. call open
