US: Higher sales and margins boost Nike Q3
- Q3 earnings up 3%
- Gross margin up at 44.5%
- Sales grow 13%
Nike said it delivered strong results in Q3
Higher revenues, margin expansion and a lower tax rate helped boost earnings for sporting goods giant Nike Inc in its third-quarter.
In the three months ended 28 February, net income edged up 3% to US$685m from $662m a year earlier thanks to a jump in revenue in Western Europe, gross margin expansion of 30 bsp to 44.5%, and a lower tax rate. This was partially offset by higher SG&A investments.
Gross margin benefited from higher average prices and continued growth in the higher margin direct to consumer business, and was partially offset by higher product input costs, unfavourable foreign exchange rates, and higher discounts.
Revenues were up 13% to $6.97bn from $6.19bn a year earlier. Sales for the Nike brand grew 14% to $6.6bn, while Converse sales were up 16% to $420m, primarily driven by a strong performance in the brand's largest direct distribution markets of the US, China and the UK.
"Our strong Q3 results demonstrate our relentless focus on delivering innovations that resonate with consumers," said CEO Mark Parker.
"Despite macroeconomic challenges, Nike delivers consistent results because we focus on the biggest opportunities for growth while we manage risk across our diverse global portfolio. This is how we continue to drive long-term value for our shareholders."
Italy is one of Nike Inc’s ten leading territories at global level in terms of turnover and it is also the country in which there is the highest density of Nike brand retail outlets. There are 50 Nike...
adidas AG overtook Nike Inc in 2013 as the leading sportswear brand in the UAE in terms of retail value sales. Thus, with increasing competition from adidas and other leading sports brands set to inte...
Nike in Vietnam aims to strengthen its position as the top producer of Nike shoes. Cheap labour costs play the most important role, and the company is expected to control expenditure carefully to stay...
MarketLine's Company Mergers & Acquisitions (M&A), Partnerships & Alliances and Investments reports offer a comprehensive breakdown of the organic and inorganic growth activity undertaken by an organi...
- Why China 5-year plan won't change garment-making
- Navigating a turbulent sourcing landscape
- Supply chains under pressure as Black Friday looms
- C&A building brand loyalty through consistent fit
- ‘Fixing Fashion’ one stitch at a time
- US Q3 in brief: Burlington Stores, Guess, Chico's
- Adidas has greenest textile supply chain in China
- Global clothing and footwear trade to drop by 1.5%
- Cambodia living wage campaign kicks off
- New Balance launches first 3D printed running shoe
- Wearable technology: The future market potential for smart garments and e-textiles
- Practical Brand Sourcing Strategy
- Statistics: Trends in Global and Regional Man-made Fibre Production - 2015
- Myanmar's Garment Sector in 2015 - now with updated members' directory
- Technical Textile Markets: Product Developments and Innovations - 2nd Quarter 2015