Blog: Leonie BarrieNike picks ups its pace

Leonie Barrie | 19 December 2008

Nike continues to outpace the economy and its sportswear rivals, posting a 9% increase in second quarter profit to US$391m, and a 6% rise in sales to $4.6bn – helped by strong performances in its international markets. Even a 1% drop in US sales as retailers cancelled orders and delayed receipts couldn’t deflect from a 6% rise in Europe and a 22% and 21% revenue jump in Asia Pacific and the Americas respectively.

Future orders scheduled for delivery from December through April 2009, an important indicator of future demand, also took the market by surprise with a 6% jump excluding currency effects. And even as the global slowdown has accelerated, “we haven’t seen a worsening situation as we look at November going into December,” confirmed CEO Mark Parker in a conference call today.

Breaking down the futures figure, orders in the US were up 6% – driven by retailers’ demand for Nike and Jordan footwear – Asia Pacific was up 11%, and the Americas 6%, but EMEA, the region that includes Europe, the Middle East and Africa, was down 13%.

This also seems to bear out figures just released by market research company The NPD Group Inc, which show the European market for athletic footwear and apparel is being hit harder by current economic challenges than in the US. The downturn is said to be most noticeable in products intended for casual use.

 


BLOG

Higher worker wages – who pays?

There continues to be a disconnect between buying departments and compliance teams when it comes to costing labour in price negotiations. So who should pay for a minimum wage increase?...

BLOG

Trump tariff dispute rumbles on

The US has escalated its trade threats to China after President Donald Trump said he is considering tariffs on an additional $200bn of Chinese goods if China "refuses to change its practices."...

BLOG

Trump spares textile machinery in tariff spat

Hundreds of US imports from China will be hit with an additional 25% tariff from next month – but to the relief of the US textile, apparel and footwear industry, most of the equipment used in the dome...

BLOG

Esquel's eco-friendly manufacturing complex

Hong Kong-based Esquel Group, the world's largest woven shirt maker, has been bedding-in operations at a ground-breaking new $313.3m eco-friendly manufacturing complex in southern China....

just-style homepage



Forgot your password?