Sporting goods giant Nike has announced robust first quarter sales, driven by higher revenues and clean inventories, and has boosted future orders in all markets except Western Europe and Japan.
For the three months ending 31 August, the company said revenues for the Nike brand were up 8%, while revenues for its other businesses, including Cole Haan, Converse, Hurley, Nike Golf and Umbro, increased 16%.
As of the end of the quarter, worldwide futures orders for Nike brand athletic footwear and apparel, scheduled for delivery from September 2010 to January 2011, totalled $7.1bn, 10% higher than the same period last year.
By geography, Nike’s futures orders to North America are up by 15%, Central and Eastern Europe by 8% and China by 25%. Western Europe future orders are down 7% though, while Japan orders fell 8%, Nike said.
“We had a great first quarter. It demonstrates the power of our growth strategy, which is to create innovative products, amazing brand experiences, and premium retail destinations wherever consumers connect with Nike,” said Mark Parker, president and CEO of Nike.
“Going forward we’ll continue to maximize the flexibility, balance and alignment that we have built into our portfolio of brands and categories. Those strengths will help us navigate the continued uncertainty in the macro-economic picture.
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By GlobalData“More importantly they help us leverage the global appetite for sports and innovation, which has never been stronger. That’s how we continue to grow our businesses, strengthen our balance sheet and increase our returns to shareholders over the long term.”
Click here for just-style analysis of Nike’s first quarter results.
