A full transcript of Nike’s 2007 Q2 financial analyst confrerence all is now available at SeekingAlpha.com. Here’s the good stuff…
CEO Mark Parker on the Nike brand:
The Nike Brand had a lot of big wins in key categories this quarter. Nike Plus is turning out to be huge. In less than six months, Nike Plus users have logged more than 3 million miles and there are over 3 million Plus-ready shoes in the global marketplace; we expect that number to double by the year end. Clearly our confidence in this concept has proven to be accurate.
Mark Parker on Nike shoes:
On the footwear side, we’re very bullish on performance here coming into this next quarter. A lot of that will be driven by in basketball the Air Force 25 which is inspired by the Air Force One; a stronger core running line; updates to both the Air Max 180 and 360, a new woman’s dance line which has been received incredibly well. We have some product in football, or soccer, globally. I mentioned the Ronaldinho Signature Collection which has gotten also great response. Of course, Lebron is out there now and doing quite well. Nike Plus continues to be extraordinary, and we see that just accelerating as we add more styles to Nike Plus over this next six to 12 months.
Mark Parker on the future:
The last thing that I would just say going into fall, Nike Plus again will be important to us, as well as this new concept that I think we’ll probably get a chance to show you a little bit more about in February, which we call the Zoom Air initiative. We talked about low profile and how important it is in some parts of the world. This is an exciting new approach to both technology and performance as well as aesthetic and Sport Culture.
Board President Charlie Denson on the Nike Store:
I think what we want to do is continue to operate it well and we want to continue to use it as a leading indicator or influencer in developing new retail concepts. What I think is going to become probably more important than ever in the future is this thing that we’re calling the consumer experience and how the consumer interacts with the brand at point-of-sale and after the point-of-sale. I think the Nike Plus example is a great one as far as how it’s changing the landscape of running and it’s happening after point-of-sale, and we’re developing a much deeper and more meaningful relationship with consumers in a whole new world. I think the retail environment is going to be part of that.
Even though this site was founded on the idea that you don’t need to buy the Nike+ shoes to use the Nike+iPod Sport Kit, I’m happy that Nike has seen a positive effect on shoe and apparel sales, and I’m sure that they will continue to win customers over to their brand as time goes on. The quotes above are a pretty good indication that Nike (and presumably Apple) will continue to build on the success of the Nike+iPod relationship by creating more interactive technology concepts for sports training and recreation. And I’ll be hard at work trying to figure out how to use them without having to buy a lot of extra gear. :)
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