Nike continues to struggle in the Chinese market, while the sneaker maker is making cautious progress elsewhere. Analysts believe the brand’s comeback is proceeding at a pace of “two steps forward and one step back”.
Comeback is “not linear”
In the quarter ending 30 November, global sales rose 1% to $12.4 billion (€11.4 billion). That level is still about $1 billion (€920 million) below sales two years ago. Pressure on profitability also remains high, with gross margin falling 3 percentage points to 40.6%. Nike attributes this primarily to higher import tariffs in North America, which the company says cost $1.5 billion a year. Net profit fell by 32% in the quarter.
