Nike's CEO Discusses F2Q 2014 ResultsGood afternoon, everyone and welcome to Nike's Fiscal 2014 Second Quarter Conference Call.Leading today's call is Kelley Hall, Vice President, Treasury and Investor Relations.Before I turn the call over to Ms. Hall, let me remind you that participants on this call will make forward looking statements based on current expectations and those statements are subject to certain risks and uncertainties that could cause actual results to differ materially. These risks and uncertainties are detailed in the reports filed within the SEC, including Forms 8 K, 10 K and 10 Q.Some forward looking statements concern future orders that are not necessarily indicative of changes in total revenues for subsequent periods due to the mix of futures and at once orders, exchange rate fluctuations, order cancellations, discounts and returns which may vary significantly from quarter to quarter.In addition, it is important to remember a significant portion of Nike, Inc.'s continuing operation including equipment; Nike Golf, Converse and Hurley are not included in these future numbers.Finally, participants may discuss non GAAP financial measures, including references to wholesale equivalent sales. References to total wholesale equivalent sales are only intended to provide context as to the overall current market footprint of the current brands owned by Nike, Inc.Thank you, operator. Hello, everyone, and thank you for joining us today to discuss Nike's fiscal 2014 second quarter results. As the operator indicated, participates on today's call may discuss non GAAP financial measures.Joining us on today's call will be Nike, Inc. President and CEO, Mark Parker, followed by Trevor Edwards, President of the Nike Brand. Finally, you will hear from our Chief Financial Officer, Don Blair, who will give you an in depth review of our financial results.Following their prepared remarks, we will take your questions. We would like to allow as many of you to ask questions as possible in our allotted time, so we would appreciate you limiting your initial questions to two. In the event you have additional questions that are not covered by others, please feel free to re queue and we will do our best to come back to you. Thanks for your cooperation on this.I will now turn the call over to Nike, Inc. President and CEO, Mark Parker.Thank you, Kelley, and hello everyone, and happy holidays. It's always good to finish strong, and as we reach to close of the second quarter, that's exactly what we have done. Looking at our results, you clearly see that the Nike, Inc. portfolio is a powerful engine for growth.Here are the highlights. Nike, Inc. revenues increased 8% to $6.4 billion. Gross margins came in better than anticipated, up 140 basis points. SG increased 14%, in line with expectations and reflecting strategic investments in our brands and operations and diluted EPS rose 4% to $0.59. As we discussed at our recent investor meeting, at no time in our history have the growth opportunities been greater for Nike.Our ability to surgically focus our resources and align our efforts across Air Jordan 11 multiple areas of our business allows us to successfully invest in our biggest opportunities for profitable sustainable growth. This approach ensures we are in a strong position to manage the macroeconomic challenges when they arise and seize new opportunities when conditions improve, like now, as we see initial signs of stabilization in select national economies.Regardless of the macroeconomic conditions, we know we have to earn our leadership position with consumers every single day, and our management team has the experience to focus Nike's resources on what matters most to our consumers. Air Jordan 9 Retro With this focus we continue to increase our potential and ultimately reward our shareholders with long term, sustainable and profitable growth.As I've said before, innovation is at the heart of everything we do. I continue to see expanding opportunities for Nike to reach new heights of product and performance innovation. We are a successful innovator because of our unique partnerships and first and foremost, with the world's greatest athletes whose insights inform our amazing products and services, but also with other partners who help us advance in areas like digital and manufacturing.Our innovation pipeline has never been deeper or stronger than it is today. Let me highlight three areas of innovation from the quarter. First, the next steps we are taking with our digital initiatives; second, our new advances in Nike Shoes apparel; and third, our continuing efforts to revolutionize manufacturing. At Nike, digital is a powerful innovation engine. As we have discussed, our digital ecosystem has three components; consumer connections, ecommerce, and digital products Nike Air Yeezy and services. Together these components form our integrated digital strategy, and I continue to be incredibly bullish on digital's potential to drive both innovation and strong growth for years to come.Looking at our ecommerce business, we delivered another strong quarter with 33% revenue growth, and at less than 15% of our DTC revenues today, our ecommerce business clearly has opportunity to grow.In digital products and services, we launched the next generation of the Nike+ FuelBand, the FuelBand SE. With enhanced features and services for our consumer, it reinforces NikeFuel as the global currency of movement. Given digital's tremendous potential, we will continue to invest in innovation and infrastructure to accelerate our digital strategy and capture significant growth for Nike.Turning to apparel. We delivered some major apparel innovations in Nike Shox the last six months. Most notably with Tech Fleece, Aeroloft and Dri FIT Knit. And having just come back from Brazil, where World Cup fever, by the way, is already running quite high, I will touch on our World Cup related advance in apparel, and that's our new Brazilian and French football Kids Nike Trainers kits.Working closely with the athletes and the national federations, we designed these kits to reflect each country's rich football heritage. Insights from our athletes are reflected in the sharp attention to Air Jordan 6 detail and beautiful craftsmanship. Each kit integrates technical performance innovation with team specific design Air Jordan 14 Retro elements. The kits feature Dri FIT Knit technology, engineered mesh, and laser cut ventilation for better cooling and our lightest Nike Pro base layer ever.In fact, the uniforms are actually 16% lighter than our 2012 Euro Champ uniforms, and they are made of recycled polyester using the equivalent of 18 recycled water bottles in every kit. Air Jordan 3 Retro In the weeks ahead, we will launch eight more national team kits as all ten Nike teams, by the way, a Nike record, get ready for the World Cup. These new kits are Kids Shoes just one example of the unprecedented level of product innovation we have planned for the World Cup. It's an exciting time as we look forward to being a part of the biggest sports event in the world.Nike's commitment to innovation extends beyond the products we design to how they are manufactured. As we shared at our Investor Meeting, our manufacturing revolution initiatives continue to challenge traditional manufacturing assumptions, so we can maximize our potential to serve athletes and further extend our competitive position.Take two examples; ColorDry and Flyknit. ColorDry is a revolutionary new fabric dying process that replaces water with recyclable carbon dioxide. Beyond the breakthrough and sustainability, this impressive technology delivers superior results with brighter and more consistent colors in the fabric. With Flyknit, we have continued to leverage its game changing potential. We have Air Jordan 14 Retro extended Flyknit across all nike dunk heels of our running footwear platforms at Zoom, Lunar, Free, and the Air Max, and now with the Kobe 9 masterpiece, basketball is part of Flyknit's new frontier.Kobe's new shoe includes the best of Nike's technologies, not only Flyknit, but also Flywire and Lunarlon . The technologies behind these visually striking shoes provide support and mobility at the same time, and we are not done with Flyknit, not even close, we will continue to expand Flyknit across categories pushing past the boundaries of what people think is possible to deliver incredible products for our consumers. By the way, we just learned of Kobe's injury, and we want to wish him a full and fast recovery.We are also able to deliver Air Jordan 7 Retro strong results by remaining focused on the consumer and delivering innovative products into a differentiated marketplace. The strength of our portfolio allows us to leverage a focused group of high energy brands across a globally diverse set of markets and broad range of categories.Trevor and Don will provide more specifics, but I want to Air Jordan 3 Retro highlight a few examples that reinforce the competitive advantages of our portfolio. First is Converse. With Q2 revenue growth of 14%, Converse continues to deliver great results. Converse is a global brand with a rich history, and we continue to leverage this legacy to drive growth by making Converse relevant to each new generation of consumers around the world.Next is Western Europe, where revenues grew 18% in the quarter. In early 2012, we decided to reset our strategy in Western Europe. As our second quarter results demonstrate, with the right strategy and the right execution, we can deliver tremendous results, and our futures orders of 26% demonstrate the clear momentum we have in the market, reflecting strong growth across multiple categories.