00:00Kevin, I am curious. I know it's only been a year. Turning around a ship of this size takes longer than just 12 months.
00:05But so far, how do you grade what Elliot Hill has been trying to do?
00:10Yeah, it's not an easy job for sure. But I think he's done.
00:13He's proven, I think, to the investment community that he's the right guy for the job.
00:17He knows exactly what the history, what the DNA, to Amy's point, understands what this business is all about,
00:24knows how to realign, reorganize it or, you know, the business around sports, centering around the athlete.
00:31And he's doing a lot of the heavy lifting right now, you know, across reengaging wholesale community,
00:37cleaning up inventories, realigning the cross-functional teams. A lot going on for sure.
00:45I am curious. So one challenge they do have, I mean, I know we're talking about the future.
00:49And right now we're looking at a new shoe that they're going to come out with at the start of the next year.
00:53But this is also a company that's still kind of bogged down by a lot of inventory issues that cropped up under the previous CEO.
01:00How long does it take for him to get out from under that?
01:03We should probably be out of the main three, which have had inventory issues, are the Jordans and the Dunks and the AJ1s.
01:12And we're at, you know, probably close to being there by the end of this calendar year.
01:19And in that point, you know, it's been a challenge.
01:23It's gone on a little bit longer than we all would have liked.
01:26But they will be probably by the end of this calendar year in a good position on the inventory front.
01:30I am curious about the partnerships on the retail side.
01:33I mean, they've made a deliberate move back in the day to do more stuff through their own channels.
01:38And I am curious as they sort of go back to the retailers, back to the Amazons, et cetera, et cetera.
01:44Do you think that's going to be a net positive on them, not just in terms of sales, but also on profitability?
01:51You know, part of the way they restructured these cross-functional teams was not just to drive revenue, but it was also very focused around profitability.
01:59So I don't think – I think they went into these conversations eyes wide open on kind of what the opportunity was.
02:05First is they need to change the conversation.
02:08They need Nike to be put, show the passion that they have as a business, put that back into the conversations,
02:13know that their retail partners aren't being, you know, kind of hung out there,
02:18that they're going to be supporting them and helping them through.
02:22So I do think this is kind of a one plus one equals more than two in this situation by just driving greater relevance
02:29and really engaging that frontline offense, which was something that with Elliott's predecessor that wasn't being done,
02:36which is unfortunate because that is your frontline sales team right there.
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