Nike China sales increase 24% to $938m

Nike, the world’s largest footwear maker, reported a 4.1 per cent rise in quarterly revenue as demand rose for its shoes and apparel in North America and China.

New footwear launches in the basketball, running and sports categories are helping Nike draw customers toward higher-priced products, while the “athleisure” trend is driving sales in the athletic apparel sector.

Sales in Greater China, a fast-growing market, rose 24 percent to $938 million, helped by overhauled stores and greater online traffic.

Revenue from North America, Nike’s largest market, rose 9.4 per cent in the quarter ended November 30th. Footwear sales in the region rose 12.3 per cent to $2.16 billion. Nike said net income jumped by 20 per cent to $785 million, or 90 cents per share. Revenue rose to $7.69 billion from $7.38 billion.

“Overseas markets have great potential for Nike,” said Paul Swinand, an analyst at Morningstar Inc. “Investors should take a read on Chinese consumers from the futures orders: there’s room to purchase new Western goods in people’s budgets. That highlights the potential for long-term middle-class growth there.”

In the most recent quarter, Nike’s China unit was the standout. Footwear sales there gained 30 per cent to $600 million, while apparel revenue climbed 15 per cent to $306 million. This strength looks set to continue, with futures orders for the segment increasing 34 per cent, excluding currency effects.

Source: irishtimes & thestar

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