David Rosenthal: belief

Transcript context

…I'm not talking about $5000 items, I'm talking about charging $200 instead of $180 because there's a swoosh on it when the market price for those shoes seems to be $180 no matter who makes them. Why don't they do that? Is it because of what it says right at the top of their IR website, which is Nike Inc is a growth company, and they care more about growth than harvesting profit dollars? It could be. I think the thing that is so confounding here is the secondary markets. There is no question that the value of many Nike items is well above their selling price. I don't think that's the case for Adidas, maybe for some items, but I doubt as many as Nike. I don't have a clear answer here. I think my best answer is, they want the most swooshes out there in the world. There are some sweet spot where they're willing to trade off profit dollars for that, for the continued brand presence, where the swoosh feels like a ubiquitous thing, a brand people celebrate and are excited about, and they just want it reinforced on everyone everywhere. They're willing to give margin dollars for that.…

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