Blog: Nike’s doing it
Leonie Barrie | 21 September 2007
In February, Nike told investors and analysts that it aims to be a $23bn company by the end of fiscal 2011, and its latest set of results seems to put that goal firmly in sight. “The world continues to be a Nike-branded place,” is how one analyst put it.
An expansion of gross profit margins to 44.8% in the first quarter of fiscal 2008, from 44.1% a year earlier, suggests Nike is in track to achieve healthy earnings growth over the next year. And an 11.5% jump in futures orders for its footwear and apparel indicates demand for its products remains strong.
New lines are hitting the mark in regional markets, including the T90 soccer boots which helped increase sales in Europe by 16%. And with sales in the Asia Pacific region soaring by 22%, Nike can be confident of profitable growth in China ahead of the Beijing Olympics in summer 2008.
The US market, however, continues to be the thorn in its side, with revenues up just 2% in the first quarter. The company has until now remained resilient to the slumping sales of athletic shoes which have dented performance at two of its largest customers, Finish Line and Foot Locker. But the question now is will this resilience last?
In a conference call with analysts, Nike’s president and CEO Mark Parker said the fact that others are struggling in the US market creates an opportunity for Nike.
While demand might be down from the mall-based retailers, it sells through enough different retail chains and price points to be shielded from weakness in any one channel. And new retail initiatives like the ‘House of Hoops by Foot Locker’ basketball stores - due to open next spring - will ultimately give it better control over how its products are sold.
Continuing our look at what lies ahead for the apparel industry and its supply chain in 2017, the panel of industry experts consulted by just-style last week tackled likely shifts in the sourcing land...
This week our focus turns to first thoughts from a panel of industry experts consulted by just-style on the challenges and opportunities likely to face the apparel supply chain in 2017, with prospects...
Welcome back after the holiday break, and from the team here at just-style I’d like to wish all our readers a happy and prosperous New Year....
Apparel sourcing is a complex process built on a mix of location, logistics, lead-time, price, compliance, risk and reliability. And it's in a constant state of flux as retailers, brands and manufactu...
- Outlook 2017 – What next for apparel sourcing?
- Outlook 2017 – What else is the industry watching?
- Outlook 2017 – Strategies for sourcing success
- Is China about to burst its apparel trade bubble?
- Outlook 2017 – Challenges and opportunities
- M&S quality focus finally lifts clothing sales
- MAS Holdings planning second industrial park
- Sri Lanka on track to regain EU GSP+ benefits
- 22 dos and dont's – When sourcing goes wrong
- Aéropostale to reopen 500 stores across the US
- Global apparel markets: product developments and innovations, October 2016
- Outdoor performance apparel 2016: A broader perspective
- Global market review of lingerie – forecasts to 2022
- Anti-odour clothing: fresh fashion for an active lifestyle
- Southeast Asia strategic sourcing review – a focus on Cambodia, Vietnam and Myanmar