00:00Drake, I mean, your data kind of looks a lot closer at the demand picture from where exactly
00:05the consumer sits. When you look at that data, is it telling you that Nike is gaining momentum?
00:11It depends on how you look at it. Certainly within the apparel segment, we do see Nike
00:17benefiting, certainly within the World Cup time period. That being said, we're still the area
00:23where Nike is still relatively challenged in our view. Just to kind of give you a sense of what I
00:27mean, over the past several weeks, we've seen substantial momentum for Nike as well as Adidas
00:31and Puma in the wake of the past three weeks of the World Cup kind of time period. Now, even
00:37though
00:37Nike's done well during that time period, we've actually seen Adidas well outpace them within the
00:42soccer jersey segment. And so while Nike may be larger for overall apparel, at least during the
00:47time period right now within soccer jerseys themselves, Adidas actually seems to be outpacing
00:52them. So I would say kind of a mixed bag from that perspective. Well, that's what I'm curious about
00:56because I mean, Elliott Hill has publicly put a lot of stock in these sort of big sporting events,
01:00whether it's the Olympics, the World Cup, etc. Obviously, the World Cup, the official sponsor
01:05is Adidas, not Nike. I know Nike outfits some of the teams. So that certainly would give Adidas a bit
01:11of a leg up here. But do you think that there is the ability for these events to actually translate
01:16into a meaningful uptick in sales and more importantly, sales that are sticky or long lasting that go beyond
01:22the event itself? You know, I'm somewhat skeptical of that. I think at least for an immediate term
01:28perspective, the apparel bump will definitely be helpful for Nike. In my view, we certainly see it
01:32from soccer jerseys, but just more broadly. But if your view is that Nike needs to reassert itself
01:38within its sports credentials, right, to fix the footwear segment over time, that's actually a longer
01:44term dynamic. And one thing to keep in mind is the competitive dynamic. It's not just Adidas as the
01:50primary competitor, say 10 years ago. Now we also have players like Hoka and On and even smaller
01:55ones like Solomon, which within the footwear segment itself have, you know, increased quite
02:00substantially over the past several years. So I don't think it's a straightforward path ahead.
02:04Yeah, well, talk to us about that a little bit more because, you know, we're well acquainted with
02:08the likes of Adidas at this point. Also, when it comes to Hoka and On, but talk to us about
02:14Solomon, for example, and, you know, some of these other upstarts who are coming in and trying to take a
02:19little piece of the pot.
02:21Yeah, I think to your point, everybody's well aware about On and Hoka. But one thing that we've
02:25been tracking pretty closely in our data is the increase in Solomon, for instance. Over the past
02:30roughly nine months, we've seen substantial growth for Solomon within our data, particularly in the
02:34U.S. I mean, it was a brand that's been in France for a long time, but in the U
02:37.S. it's very much
02:37taken up. And when it comes down to product, that's what really matters. And we see for Solomon,
02:42their XT6 product franchise is very popular in our data. Now, of course, that's a trail running
02:47shoe. Maybe not what you'd immediately think is the next hot, you know, lifestyle shoe. But to me,
02:52it signals that the immediate use case of a shoe, whether it's running or trail running or working
02:58out or what have you, isn't necessarily germane to why the shoe might become popular. Just to use
03:02Adidas as an example, the Samba shoe that's been so popular over the past several years,
03:06it's originally an indoor soccer shoe from, I believe, the 70s. But I don't believe that many
03:10people are using it for the intended purpose.
03:11And Drake, outside of just the brands themselves, I do want to talk about, you know, shoe design
03:16and how that's evolving. Because, you know, you mentioned that you think about the thick-soled
03:21and chunky style shoes. It's something that you've been looking at. For context here, I wear Hoka,
03:26so I like the, you know, inflated shoe look here. But you are starting to see some of those more
03:31low
03:31profile, minimal drop shoes come back. And I wonder, you know, whether or not we're going to see
03:37that cycle. Because 10, 15 years ago, I mean, that was kind of the shoe that you wanted to own.
03:43Yeah. And, you know, there's a couple early signs that we've been paying attention to in our data.
03:48Samba is actually one of them that seems to be benefiting. They have something called the RX
03:51Mary Jean, I believe. Very low profile version of one of their shoes. But I think Adidas is actually
03:57pretty well positioned here. Of course, they have a low profile version of the Samba. It's a Samba
04:01Mary Jane. But they've actually been working on low profile for a while. It's their,
04:05they literally call it low profile. It's the Taekwondo Japan and Tokyo or a couple of those.
04:10But Adidas definitely is moving towards low profile. But Nike has as well. You may have seen
04:14about a month or two ago, they put out something called the Nike Moon Shoe. It's kind of a retro
04:18look from literally one of the original Nike shoes. But it is also very low profile. And so,
04:23you know, from that perspective, you can see kind of early hints that the chunky shoe wave might not be
04:28here forever. I will say at least within, you know, performance running, I'd be surprised if it went
04:33more low profile. But for lifestyle, I think definitely low profile is the leading edge here.
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