Alex Straton: Perfect. Thanks so much. I just wanted to focus on kind of the running innovation that you guys highlighted a number of times on the call across areas. I think you had said you launched some running in the last few years, but perhaps it didn’t connect as much as you wanted or you wanted to scale it more effectively. So could you just touch on maybe what changed in NIKE’s approach in the last few years? And then what you plan to do differently to kind of reignite that? Thanks a lot.
John Donahoe: Yes, Alex. As I said, we – we’re at best when we align innovative product with distinctive storytelling through a differentiator marketplace. And in running, we have three different categories and running. In racing, we take our performance innovation, which sets the bar in the industry with the Alphafly, the Vaporfly and NEXT%. We have compelling breakthrough storytelling, whether it’s breaking to or we reached that elite runner and we reached them through a differentiated marketplace. And so we’re doing well there. In trail running, which is the fastest-growing segment, the Peg trail is doing very well. We feel really good about our innovation pipeline and we’re increasingly leaning in to the trail running community and to marketplace connection with that trail runner.
And then the area that we talked about road running or what we call road running or everyday running, we’re very clear we’re prioritizing the everyday runner who wants newness and consistency and we’re focusing, therefore, on some key models and ensuring that we get in the path of runners. So in terms of innovation, as I mentioned in my remarks, we’ve had some very good innovation in the last couple of years. The Invincible took some of the performance benefits from our road racing shoes, particularly ZoomX and brought them into an everyday running shoe along with some great cushioning. So good innovation. Similarly, the Infinity 4 brought the React X foam platform, which has got some real characteristics of low-carbon footprint, better high energy, but we’re not yet combining those innovations with getting in the path of the everyday runner with a really strong ground game.
And so that’s what we’re focused on. And that starts with distribution, making sure we’re breaking through everyday runners shops. So whether that’s our own direct channels, wholesale channels, running specialty doors play a really important role. You may have noted we launched the React 4 in partnership with running specialty doors. So that’s a step in the right direction, and we’re really working to break through in these channels. And then we’re working hard to better connect with runners in their community where they are, where it’s driving connections through Nike Run Club and our mobile apps being present in marathons and races and just being where runners are. And so in this case, we know what we need to do. We are focused on it, and we are moving with urgency to deliver.
Matt Friend: There’s also a meaningful opportunity as running influences, lifestyle and sneakers. And as we’ve had tremendous success from a Classics perspective over the last couple of years, we have a rich heritage of products in our pipeline related to running for decades. And so one of the things that we’re also doing is accelerating our opportunity in running lifestyle with some of our best franchises and capturing on that trend and also the consumer shift to modern comfort. And we feel like that one, two punch, as John mentioned, innovation, performance and lifestyle is really going to position us well to take greater to greater – take a greater attack at the running marketplace holistically.
Operator: And next up is Matthew Boss, JPMorgan.
Matthew Boss: Great. Thanks. So John, maybe could you speak to underlying demand trends as the first quarter progressed? Or any early fall trends that you’re seeing in both North America and China. And then multiyear, I’m curious what you see as the next leg of the Consumer Direct Acceleration strategy or just any initiatives that you see to drive further market share gains as we look forward.
John Donahoe: Actually, Matt, why don’t you take the first part of that and close in on demand, and I’ll take the second.
Matt Friend: Sure. Well, Matt, as I referenced, we saw mid-single-digit retail sales growth this quarter. And this quarter, we have a unique dynamic because we saw a difference in what we’re reporting or what we’re communicating from a retail sales perspective versus where NIKE’s reported revenue is, and that’s because of the restriction of sell-in that we put into place the last couple of quarters of last year. We do expect that to continue as we go into the second quarter. And so we are planning for retail sales growth to be in line with what we delivered this quarter from a mid-single-digit perspective. When we look at the big consumer moments this quarter, 618 seems like so long ago at this point in time, but 618 in Greater China, we were the number 1 sports brand on Tmall and saw impressive double-digit growth over that time horizon.
And within back-to-school, we outperformed the industry. And when you look at our performance over the quarter, we saw momentum building throughout the quarter, heading into back-to-school. And so we were encouraged by what we were seeing from a consumer perspective. I mentioned that we saw high single digit to low double-digit growth in our most important partners and strong growth in NIKE Direct this quarter given what we’re anniversarying in the prior year. So we continue to see consumer demand for our brands and for our products to be very, very strong. Sport is growing and the consumer is proving to be resilient. There are some dynamics in terms of shifting that’s happening from channels. We saw it in our partners a couple of years ago.
