Nike executive: 'Our digital business is on fire'

Sure. Well, we see a global playbook unfolding essentially where we are still in different stages around the world. In China, we're seeing a really strong recovery phase where we have return to growth, we have normalized inventories, our stores are not only open but our stores are demonstrating and generating growth over last year. And so what we've been able to see at Nike is that we're creating a global playbook. We're ready for a react phase if we hit a point in the pandemic where we need to close doors down and divert consumers to our amazing digital experiences. We're ready for live operations to make sure we're serving online the way consumers want with new convenience services. And then we're ready for that recovery to make sure we open for consumers and our stores are safe with great new digital experiences such as non-touch experiences and digital queuing. So when we come back to shopping, we're ready for consumers in a safe way.

Well, first of all, we've just been hitting on digital. We absolutely see our digital businesses on fire. We grew 83% in Q1. One of our insights over the period of COVID is consumers' expectations and behaviors have fundamentally changed. The consumer of February 2020 is not our consumer of today. We have achieved our goal of 2023 digital penetration of 30% three years early, and we're on our path to a 50% penetration. So first and foremost, Reggie, I'd say there's tons of potential. We're scratching the surface as it relates to digital. Beyond that, you and I have talked about our growth opportunities from a women's perspective, an apparel perspective, and I would actually say Jordan as well. We're investing quite a bit in our women's and our apparel product teams. We're also investing in our digital experiences from a women's perspective. We just launched our first maternity collection, the Nike M collection. We're going to be investing in her from a workout to a lifestyle perspective. We're going to be offering extended sizes for women. In all of our apparel products, in Q1 our women's business grew 100%. Between women's and Jordan and apparel, we took over the number one position in apparel in the competitive US. From an apparel perspective, we're all seeing the athleisure boom. I don't know what your day looks like, but I'm going from a Zoom to a Nike Training Club and back. That creates an incredible opportunity for Nike as well. So we see apparel as a real focus area from product all the way through the end-to-end consumer experience. We've just launched live streaming digitally, which is a great way to showcase a product from an apparel perspective. And finally, Jordan. Jordan's on fire. Jordan grew last quarter in every single geography. We've got some great launches coming up this holiday, and we're really investing in growth from a Jordan perspective and apparel and women's as well.

Without a doubt, Reggie. We see our future with partners big and small. Partners are a really important part of our digital and our overall marketplace ecosystem. What we've said with our consumer direct offense is that we really want to be more direct, more personal, more connected. We are innovating store concepts and we're pivoting to differentiated retail. But that differentiated retail we see with partners of all size, just partners who share our vision of a more connected, more elevated retail experience. With those partners, we're going to be investing in connected digital experiences and making sure together we never leave a consumer stranded without the Swoosh from an inventory perspective. We're calling this future strategy One Nike Marketplace, and we see it as a really important consumer-centric move forward to make sure that our consumers, regardless of where they're shopping online or in stores or with a partner or at Nike, that they feel like a member at Nike and we know them to serve them in a very personal way.

Sure. Well, first of all, I believe we're ahead, and that is our goal. While we see the world changing around us, we want to stay ahead of the state of play, and Nike will always have that aspiration. From acquiring consumers and maintaining consumers, we actually see quite an efficiency play if we work together with our partners. There is waste in the digital marketplace, and we see the possibility of acquiring consumers together as a positive efficiency play. Then, as we work down the funnel and serve them and know them better together with our partners, there's a significant growth potential as we work together to increase LTV for our consumers wherever they're shopping.