Source: NIKE, Inc. – Investor Relations – 2017 Annual Shareholders Meeting
Running time 43:07
The shareholders meeting began with votes on five topics: directors, compensation for directors, advisory vote on the frequency of compensation for directors, approval of the long term incentive plan, the final matter was a shareholder proposal for political contribution disclosure/transparency, and the selection of Price Waterhouse Coopers as the group on record for accounting. Abbreviated comments.
Quotes:
Performance in Fiscal Year 17 a year for making aggressive moves.
Nike Inc. grew 6% to 34.4 Billion
More consumers are passionate about living active lifestyles. Customers won’t speed and personal touch from brands.
External forces do not control our destiny, ultimately we do.
This June we launched the Consumer Direct Offense allows us to serve consumers faster. It puts our triple double strategy into practice. Transforms 3 core innovation, supply and marketplace.
3 milestones 2x innovation, speed and 2x direct.
This year we delivered a cushioning revolution. Started with Breaking2 featuring the Vaporfly 4%, Vapormax fulfills our dream of walking on air and the final part is Nike REACT. Premiered in Hyperdunk and Jordan Superfly.
Doubling down on digital knitting like the Flyknit bra.
1/3 of our business Falls in our broad definition of Direct, but it drove 70% of our growth in 2017. Nike Direct reflects our biggest opportunities.
Nike Direct starts with digital which propells our e-commerce growth.
Nike.com reaches 45 countries.
Digital studios and Nike+ apps. Members on Apps spend triple as much as they do on Nike.com.
Jordan Bastille is a partnership with Foot Locker
Nordstrom we are combining digital with physical on the Nordstrom’s app.
In China we have a premium TMall where Nike reaches 500 Million users.
Soho and Miami Nike are immersive experiences.
China sports economy will reach 850 Billion by 2025. In Beijing we opened our largest basketball doors in China.
Express Lane will cut product cycle dramatically. Speed starts at the Sketchpad. Goals met with 25% less product.
Nike we believe in the power of sport to breakdown barriers.
NBA partnership will bring fans closer to the courtside.
Flyknit with precision apparel.
Attack the impossible and leverage advantages.
Trevor Edwards, Hannah Jones and Edward Campion join to help answer questions.
Why was now to the time to announce Consumer Direct and why did it require a reduction in force?
A: To grow we had to make those decisions and we don’t take those lightly… It puts us in a position to get closer to the consumer.
What will be new and different with the NBA Launch?
A: Basketball is the next global sport. 2 things that are amazing: The most incredible uniforms are 25% lighter and the Nike Connect is more than a jersey. Allows our consumers a direct connection to the athlete they love. They get to shop in some very special ways and content.
Does Nike management consider the impact of its conservative and libertarian employees when it takes liberal positions?
A: We value all of our employees… We’re proud of the positions we’ve taken.
What are you doing to battle climate change?
A: We lead with innovation (on climate change). Products marry sustainability with performance. This week we launched Flyleather which cuts the carbon footprint 80%. We will continue to advocate for policy for the future.
What are the financial implications of Consumer Direct?
A: Ultimate goal is better serving consumers. CD will reignite Nike growth and drive long term growth. 2X Innovation. 2X Speed capturing the demand… the closer we can get to the moment, the closer we get to the consumer. 2X Direct leveraging digital gives consumers experiences they love. It’s the key to strong growth in the US Marketplace.
Discussion on Workers Right Consortium with Georgetown.
11 Nominees nominated
Compensation approved
Frequency of advisor votes every year.
Longterm plan approved
Shareholder proposal did not pass
Independent registered accounting firm has been approved.
