US: Europe and Converse send Nike Q1 profit up 33%
- Q1 net profit up 33% to US$780m
- Revenues rise 8% to $7bn
- Nike brand growth in every product type and region, bar China
Sporting goods giant Nike posted a 33% surge in first quarter net profit, buoyed by near-ubiquitous growth and improving margins.
Revenues for the Nike brand rose 7% to $6.5bn, with Europe leading the growth spurt and sales rising everywhere except Greater China, where the company is in the midst of a repositioning exercise.
Converse brand sales surged up 16% to $494m on the back of a strong performance in the UK, North America and China.
Meanwhile, easing raw materials costs helped gross margin improve by 120 basis points to 44.9% in the three months to 31 August.
At the end of the quarter, Nike said worldwide futures orders for delivery between September and January were up 8% on last year – or 10% excluding the impact of exchange rates.
“Our powerful portfolio of businesses, combined with unmatched leadership and resources, allows us to capitalise on opportunities that drive long-term value for our shareholders,” said Nike president and CEO Mark Parker.
“I am more excited than ever about our potential to continue to innovate with purpose, and fuel Nike’s growth.”
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