US: Nike Q3 profit up 16% as margins rise
- Q3 net profit up 16% to US$662m
- Revenues up 9% to $6.2bn
- Gross margin up 30bps to 44.2%
Sporting goods colossus Nike grew earnings ahead of revenues in the third quarter of fiscal 2013 thanks to a substantial increase in gross margins.
On a currency-neutral basis, Nike brand revenues were up 10% in the three months to 28 February, thanks to growth in all regions except Greater China and Japan, and in all key categories except sportswear and action sports.
Meanwhile, revenues for other businesses were up 9%, with growth at Converse and Nike Golf more than offsetting lower revenues at Hurley.
The increase in gross margin was attributed to a combination of pricing actions and lower material costs, which more than offset higher labour costs.
However, this was partly offset by higher discounts, particularly in Greater China, the company said.
Nike president and CEO Mark Parker hailed what he called “strong results”, and said: “Given the diversity of our portfolio, we’re able to capture big opportunities that drive sustainable, profitable growth.
“At the same time, we continue to invest in new ways to enhance athletic performance, build strong consumer communities, and improve how we design and manufacture our products.”
A fundamental difference between Cambodia and Bangladesh is that the Cambodian government and industry are held accountable for making the necessary improvements to factory working conditions. And thi...
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...
The US trade deficit in footwear rose 6% to $22.9bn last year on the back of a sizable increase in imports and a marginal drop in exports, an annual trade report has shown....
Nike Venezuela SA is present in Venezuelan apparel with Nike stores, where only Nike products are sold. Stores’ product assortments vary from functional items, to be used to practice a specific sport,...
Nike Inc had no plans to open new outlets or develop internet retailing for Nike products in Thailand at the end of the review period. The company’s 26 Nike stores are focusing on urban customers and ...
Outdoor clothing company Woolrich has hired footwear licensing group Portland Product Werks (PPW) to launch its debut footwear collection....
Nike is focused on achieving long term revenue growth by developing its line of “must-have” brands in the US, where it is the established branded leader in both footwear and the wider apparel market. ...
- Will Amazon take over the US apparel market?
- US groups seek workable apparel provisions in TPP
- VF Corp confirms interest in Africa sourcing
- Pakistan textile mills fear rash of closures
- Is garment compliance fundamentally flawed?
- VF Corp ups guidance on "strong" Q2
- Bangladesh workers rally for unpaid wages
- Under Armour secures Germany and Austria deals
- Manufacturing in China falls to 15-month low
- Under Armour lifts outlook after Q2 revenue hike
- Global Database of the Top 1000 Apparel Producers - Company Names, Financial Performance, and Contact Details
- Ethiopia – the emerging textile and clothing industry
- Global market review of workwear - forecasts to 2019
- Management briefing: Factory safety and auditing: The key challenges
- Global market review of denim and jeanswear – forecasts to 2020