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."
Nike is expected to maintain its position as the most important sports brand in Chile. Nike de Chile’s strategy is to continue organising sports events – such as “Nike 10K” or “Nike 300K” – aimed at i...
Nike México SA de CV plans to continue to position itself as one of the top sports brands in the country. In order to accomplish this goal, it will continue sponsoring local sports celebrities and foo...
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...
Reacting to the specifics of the Danish sportswear market, Nike Denmark ApS is aiming at keeping up its position as the leading player in Denmark by focusing on a combination of performance sportswear...
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 ...
Despite the economic slowdown in Poland, Nike Poland did not suffer a loss of share in the Polish apparel market. Like numerous other operators in the market, the company aims to overcome losses in re...
- Improved supplier capabilities benefit Next
- THE FLANARANT: Understand win-win or lose out
- China and Vietnam lead US apparel imports in July
- Next H1: What the analysts say
- Retailers voice concerns on Scottish independence
- Brandix selects first "game-changing" innovations
- H&M goes green with Conscious Denim
- TPP talks "make progress" but issues remain
- Adidas defends position despite investor unrest
- US cotton production set to decline
- Wool in the 21st Century: new prospects for a familiar fibre
- Apparel Market in China to 2018 - Market Size, Trends, and Forecasts
- Global market review of denim and jeanswear – forecasts to 2020
- Global Database of the Top 1000 Apparel Producers - Company Names, Financial Performance, Key Executives, and Contact Details
- Global Database of the Top 1000 Cut and Sew Apparel Producers - Company Names, Financial Performance, Key Executives, and Contact Details