John Donahoe
President and Chief Executive Officer at NIKE
Thank you, Paul, and hello to everyone on today's call. Fiscal '23 was a milestone year for NIKE as we set new records while delivering on our operational and financial goals. It's clear that our strategy is working and that NIKE's unique advantages continue to drive competitive separation. Looking at our results, we exceeded $50 billion in revenue with growth of 16% on the year. This growth was broad based across our consumer construct of men's, women's and kids across performance and lifestyle and across all geographies.
North America, EMEA and APLA all saw full year double-digit growth and Greater China returned to double-digit growth in Q4. We're also driving strength through our industry leading brand portfolio with NIKE, Jordan and Converse, all of which achieved strong growth in fiscal '23. In particular, I want to highlight Jordan's brand record year. Jordan grew mid 30s with impressive growth across men's, women's and kids, footwear and apparel and in both North America and international. In fact, Jordan is well on its way to becoming the second largest footwear brand in North America. And last but not least, we returned to healthy inventory ahead of our competition.
Our inventory is flat year-over-year in value and down in units versus 12 months ago. The actions we've taken position us for more profitable growth moving forward. Across our business, we continue to build a marketplace that addresses how consumers want to be served giving them what they want when they want it and how they want it. NIKE creates distinction across the marketplace by segmenting consumer experiences to drive deep direct connections with consumers and grow the marketplace.
Today in the industry with digital and physical growth converging, we've accelerated investment to create a truly distinctive digital experience through our own platforms. Every year, we serve traffic in the billions, which delivers strong digital growth as both conversion rate and average order value continue to improve. This success helped increase the digital share of our business to 26% in fiscal '23 as compared to 10% in fiscal '19. For the year, we had strong digital growth of 24% and we expect digital to continue to lead our growth.
Now this is all powered by our membership offense. We know our consumers better and are better able to serve them with data-driven insights fueling our end-to-end value chain, including product creation, marketing and merchandising. This is translating into a sustainable and profitable growth for NIKE and we believe this growth will only accelerate as we add new capabilities built to serve consumers at scale. In fiscal '23, we expanded our membership base, but more importantly, we elevated and deepened these consumer relationships.
Our members now engage with us more frequently, buy more and are more loyal to our brands. Once members join our ecosystem, they are increasing their life long sport journeys with us. Now of course, NIKE members also shop across marketplace channels and so as we grow, we're always actively managing our marketplace to serve consumers with expanded choice, access and convenience. We think about our multi-brand partners in three complementary groups that each serve distinct needs.
First, as you know, over the past five years, we've created greater focus and differentiation working with fewer large multi-brand partners. These partners have the scale to invest in retail experiences and connected digital membership to drive long-term growth. Second, we've also sharpened our commitment to neighborhood authenticators in both sport and lifestyle to drive energy and validate our brand. This investment in community insurers brand access as well as deep local consumer connection.
And third, we partner with accounts that help us provide access to consumers across different segments and price points. And at the same time, we continue to invest in NIKE store concepts that create new distribution and serve growth opportunities not currently being addressed by our wholesale partners. The recent unveiling of our NIKE Well Collective which responds to deep insight from our female consumers revamps NIKE Live and creates an elevated approach to retail.
NIKE Well Collective brings new energy and sharpens our focus on serving the opportunity we see with women. So this is how our consumer direct acceleration strategy drives the future of the marketplace, a seamless member led experience that addresses the opportunities as we see them across the consumer landscape. Last month, I was in Shanghai and Beijing and I was blown away by how the entire marketplace experience comes to live there. Our Greater China team is building a connected and seamless journey across digital and physical, commerce and social, owned and partner doors. And I will tell you the merchandising is best-in-class.
You can just feel the energy of our brand and our product. And with our record breaking performance during this year's 618 Shopping Holiday in which we were the number one sports brand on Tmall, I'm even more confident in our playbook and strategy in China. Today, we're excited and confident with the opportunity we see in front of us. And looking to fiscal '24 and beyond, we will continue to expand our competitive separation. To that end, this quarter we made some shifts within our senior leadership team that will further deepen our growth and accelerate our marketplace advantage. Elevating Heidi O'Neill and Craig Williams to become NIKE brand's two presidents.
Heidi and Craig are both incredible leaders with long track records of driving growth and results and their new roles are designed to drive an even greater focus on innovation and integration for our business. These changes will streamline our efforts across product, brand storytelling and marketplace. I will tell you I'm thrilled and I can also tell you that their teams are thrilled as well for the kind of growth we'll be able to achieve under this new simplified structure.
For the remainder of my remarks today, I want to walk you through something that defines everything we do and that's sport. Sport is who we are. It will always be our differentiator. No brand can grow the world of sport like NIKE. No brand connects people to sport by putting all the pieces together like we can. We stay in the lead because we combine innovation, brand and the culture of sport and do it all at global scale. This is the power of our strategy. We're able to both unleash athlete potential and create the lifestyle of sport around the globe. Where other brands drive to grow their slice of the pie, we're able to grow the pie itself.
Let me walk through three areas where we have expanded the world of sport and where we see even greater opportunity ahead. First, let's discuss global football. In fiscal '23, global football grew 25% nearly doubling overall NIKE growth with women's and kids' businesses growing even faster. Key boot franchises like Mercurial and Phantom saw high full price realization as we continue to win share on pitch. We invest in the grass roots of the game while also partnering with the sports greatest. Erling Haaland joined our roster this quarter as his record pace of goal scoring cements his stamp on the future of the game and we can't wait for this summer's World Cup.
NIKE is proud to partner with more federations in the tournament than any other brand and we've matched that energy with our most comprehensive women's football collection ever. For example, we launch the most innovative women's led football boot in our history. After more than two years of testing and designing, the new Phantom Luna boot features our proprietary cleat pattern that provides peak traction and stability for female players. In addition, our World Cup kits will debut significant fit and material innovations mapped to a woman specific movements.
And last but not least, we created our largest ever footfall inspired sportswear collection for both fans and athletes when they're off pitch. We're just weeks out from the tournament and we're focused and aligned to drive energy like no one else as we connect the next-generation of fans to the world's most popular sport.
Next let's discuss basketball where we continue to see significant market leadership. Today, NIKE defines basketball and as we looked at the landscape, we see only expanding competitive separation ahead. Our influence in basketball is elevated by the strength of our portfolio of brands, NIKE, Jordan and Converse. In fact, our roster which is already the game's greatest set a new standard this season. For the first time ever, all three of our brands were represented in the All NBA First Team with Luka and Jason from Jordan, Jonas from NIKE and Rising Star Shai Gilgeous-Alexander from Converse. This is an unprecedented accomplishment.
And speaking of the game's greatest, fiscal '23 marked 20 years of LeBron signature shoe. We're excited by the continued potential of the LeBron business as his brand reaches a new dimension by bringing back earlier styles onto the court igniting new energy for these retro model with consumers. And in addition, the Sabrina 1 is resonating strongly since launch helping double our WNBA business versus what it was two short years ago. It's going to be an exciting summer as we set the stage to re-launch the Covey brand in advance Covey day on A24. And as you know, it's already been a great few months for basketball.
We had a thrilling NBA season, which concluded with Nikola Jokic taking the Denver Nuggets to their first ever title. The WNBA season kicked off with Brittney Griner making her return to the court. And earlier this week, Aja Wilson was named an All Star team captain. And in China, 10 times Chinese Basketball Association All Star Point Guard, [Indecipherable] won his third CBA championship. And earlier this week, in fact, last week in the NBA draft, Victor Wembanyama was selected number one overall by the San Antonio Spurs. We're thrilled to have Victor in the NIKE family and we're excited for what the future holds in basketball.
Now I want to take a minute to go a little bit deeper into the Jordan brand. Jordan's greatest advantage is its authenticity and connection to sport, which drives a special bond with generation upon generation. This brand has built a cultural identity that transcends the game connecting people with deep emotion and a sense of self belief. It's this authenticity that fuels Jordan's leadership in streetwear. Jordan continues to dictate the conversation by being a premium brand that drives sportswear culture. You've seen this come to life through Jordan's partners across pop culture from product launches like the Women's Teyana Taylor AJ 1 High to the brands meaningful collaboration with the movie Spiderman across the Spider Verse.
Today, Jordan is extending its core strength in men's. In Q4, Jordan launched the Tatum 1, which completes Jordan's signature offense along with Luka, Zion and the game shoe. With this foundation in place, Jordan has plans to now scale these four franchises even further and at the same time, Jordan is building real energy around our biggest growth opportunities. In fiscal '23, Jordan had over-indexing growth in both women's and kids alongside increasing strength in apparel.
And today Jordan's growth in performance footwear is now outpacing retro footwear, but no discussion Jordan's opportunity would be complete with also looking at its international business. In most of our geos, Jordan is penetrations about 10 points lower than it is in North America and this is the growth opportunity we plan to capture moving ahead. Simply put, we continue to see a tremendous amount of potential for the Jordan brand and its differentiated ability to drive culture, connection and growth like nothing else.
Finally, let me comment on our running business. Running has been a competitive battlefield lately with more and more brands joining the market and today, we're more aligned and resourced to compete and win. We saw roughly 10% growth for our running footwear business in fiscal '23 and we're just getting started. Now as you know, NIKE's advantage in innovation is shown as we continue to set the pace in racing and trail running categories led by the new Vaporfly 3 and Patreal 4 [Phonetic], respectively. And following our recent reset, we are prioritizing the needs of everyday runners through newness and consistency in the key styles they love most.
For example, last quarter, we launched the Invincible 3, which continues to perform well. Since its Q3 launch, Invincible has already doubled its retail sales versus last year and next quarter, we're debuting the Infinity Run 4, another major update to a popular franchise. In fact, I'm wearing a pair right now and I have to say they feel great. The Infinity 4's React X is our newest form, a breakthrough innovation that's more sustainable and offers runners a smooth and responsive ride following years of women led testing. And this is just the start as we reinvigorate our running footwear line with more to be unveiled as we build momentum heading into the Olympics in Paris next summer.
And in addition to innovating for runners, we're also driving the lifestyle of running as only NIKE can. The Vomero 5 which in fiscal '23 kicked off our strategic re-launch into the intersection of running a streetwear has already become a staple of modern sneaker culture. The Vomero 5 is coming into the summer with a lot of momentum as we substantially increased its volume all year. And just last month, we launched the Motiva, a walking shoe with a distinctive design at an attractive price point and one that's representative of the aggressive approach we're taking the opportunities we see in the market. And just two months post-launch, Motiva has had strong sell-through, particularly for women, already becoming a top five performance footwear style globally on NIKE Digital.
Ultimately, when we look at the full running business, while we know there is a lot of work ahead, we remain confident in our go forward strategy and firm in our belief that we're all set to compete with strength. In the end, our CDA strategy is working. Our brands have strong energy. Our innovation pipeline is as relentless as ever and we're executing against what matters most to consumers. And as we look at fiscal '24, NIKE will occupy the same leadership position that we earned year-after-year as we usher our industry into the future.
And with that, I'll turn the call over to Matt.
