US: North America and emerging markets boost Nike Q2
- Q2 net income rose 9% to $521m
- Total revenue rose 7.4% to $5.96bn
- Worldwide futures orders up 6%
Sporting goods giant Nike Inc has booked a 9% jump in profit from continuing operations during it second quarter, helped by growth in all key categories, product types and geographies except China.
The Beaverton, Oregon based firm said its net income in the three months to 30 November rose 9% to $521m, or $1.14 per share, up from $480m, or $1.03 a share, in the same period last year.
However, including $137m in losses linked to its sale of the Umbro and Cole Haan businesses, net income fell 18% to $384m, down from $469m a year ago.
Despite its overall profit gains, gross margin fell 30 basis points to 42.5%, with higher sale prices and lower material costs offset by higher labour costs and unfavourable exchange rates. Margins were also hurt by the sale of more lower margin products.
Total revenue rose 7.4% to $5.96bn. Excluding the impact of changes in foreign currency, North American revenues were up 17% to $2.4bn, Western Europe rose 4% to $897m, Central and Eastern Europe climbed 7% to $266m, and emerging markets surged 18% to $1.05bn. But China revenues fell 12% to $577m.
Worldwide futures orders suggest this momentum will continue. For Nike brand athletic footwear and apparel, scheduled for delivery from December 2012 through April 2013, orders totalled $9.3bn - 6% higher than the same period last year.
"Our strong second quarter results show that our growth strategies are working, even under challenging macroeconomic conditions," said Mark Parker, president and CEO.
"We have a focused and flexible portfolio that allows us to target the biggest growth opportunities at all levels - brand, category and product. We stay connected with our consumers and that enables us to deliver innovations that excite the marketplace, grow the business and deliver more value to shareholders."
The Zero Discharge of Hazardous Chemicals (ZDHC) Group has launched version two of its Joint Roadmap, aimed at attaining a "new standard of environmental performance for the global apparel and footwea...
The Sustainable Apparel Coalition (SAC), which is working to reduce the environmental and social impacts of global apparel and footwear production, has launched a new interactive tool to help provide ...
Although major US companies have shown interest in importing garments from Burma/Myanmar, systems and infrastructure need to be improved and restructured before significant US-Burma clothing and texti...
The most-read stories on just-style this week include calls by a US government official for garment buyers to continue sourcing from Bangladesh, PVH executive Mark Green's vision for the future supply...
Nike will stop producing merchandise for Livestrong, the charity set up by disgraced cyclist Lance Armstrong. ...
Thousands of garment workers have clashed with police as protests for higher pay escalated this week at a Nike clothing supplier in Cambodia....
- Supply chain takeaways from Sourcing at MAGIC
- Why voters don’t want more global supply chains
- Cotton supply chain transparency an ongoing issue
- No simple way to be sustainable, says SAC CEO
- Denim and athleisure top picks for back-to-school
- H&M takes action over Myanmar child labour breach
- Vietnam garment industry calls for strategy update
- US Q2 in brief - Sears, Burlington, Tilly's
- Zara USA faces US$5m deceptive pricing lawsuit
- Li & Fung eyes supply chain speed in 3-year plan
- Too Many Standards
- Southeast Asia strategic sourcing review – a focus on Cambodia, Vietnam and Myanmar
- Under Armour, Inc. (UA) - Financial and Strategic SWOT Analysis Review
- Central America strategic sourcing review - a focus on Guatemala, El Salvador and Honduras
- Myanmar's Garment Sector in 2015 - now with updated members' directory