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.”
Nike Sales’ strategic direction involves increasing its efforts to develop new products, and the opening of more retail outlets. The company is also looking forward to partnering more sports goods sto...
Within sportswear, Nike and adidas are constantly neck and neck in the race for first position. Nike invests significantly in product development, which is reflected in its product offer. Recent launc...
Football is expected to remain Nike’s main strategy in the Portuguese territory over the forecast period. Fuelled by the sponsorship of the Portuguese national football team and its star Cristiano Ron...
Nike aims to reduce the distance with its main competitor adidas by reinforcing its presence in the country through new openings in the most important locations of Madrid and Barcelona....
- Levi Strauss raises the bar on sustainability
- Nike reaffirms US production commitment
- Gap and H&M back Myanmar path to labour reform
- H&M faces margin pressure on dollar impact
- Can the Gap brand reclaim its iconic status?
- Myanmar minimum wage set at US$3.2 per day
- Far Eastern to invest $323m in Vietnam textile hub
- Fast Retailing supplier continues strike talks
- China cotton stockpile auction may shake up market
- Under Armour unveils newest retail presence
- Global market review of lingerie - forecasts to 2020
- World Textile and Apparel Trade and Production Trends: The EU - May 2015
- Wool in the 21st Century: new prospects for a familiar fibre
- Apparel Retail: Top 5 Emerging Markets Industry Guide
- Myanmar's Garment Sector - Opportunities & Challenges in 2015