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Earnings Calls: 
NIKE Second Quarter Earnings Call
Author: Rozalina Destanova
123jump.com
Last Update: 4:32 PM EST December 21 2007


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The athletic-shoe maker reported revenue increase of 14% to $4.34 billion, surpassing expectations of $4.21 billion. Nike, which recently announced it would buy British soccer brand Umbro, has been largely unaffected by a slump in demand for athletic shoes among U.S. mall-based retailers. European sales rose 18% while sales in Asia increased 17%, both lifted by currency translations. Nike opened a flagship store in Beijing in August as it expands its reach in China.


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Brad Cragen (Goldman Sachs): Could you comment on the One Star launch with Target?

Mark Parker: We are working with Targets, which is an account retail partner that we highly value. I am happy with the relationship with Target. One Star is essentially a sub-brand of Converse as opposed to the Converse brand proper. There is an exclusive relationship with the One Star brand in apparel and in footwear with Target in the United States. We are bullish on the relationship, feel like we are ready to come out at the gates. There are two phases the first part of January and then fully in the first part of February. The product line is strong in terms of the design and also the value for the price. Target runs a strong and disciplined operation and has some marketing strength as well. Target is going to put some energy behind the One Star brand and that launch soon in coming weeks and then we expect that to continue to build throughout the year and beyond.
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