American sports brand Nike experienced a 7% third quarter turnover increase, but its American results dropped compared to the year before.
Drop for Converse
Nike’s third quarter turnover reached 9 billion dollars (7.3 billion euro), up 7% compared to the year before, 4% thanks to exchange rate fluctuations. The Nike brand was also the entire reason for the turnover increase, with a 4% increase at level exchange rates. Converse had to deal with an 8% drop however. The overall company grew in nearly every market: +13% in the EMEA region (Europe, Middle East, Africa), +16% in China and +8% in the rest of Asia and Latin America. North American turnover dropped 4%, partially because of an 8% shoe sales drop.
Nike does claim improvement in North America: “As we close Q3, we now see a significant reversal of trend in North America”, CEO Mark Parker said. The North American drop is probably because of eternal rival Adidas’ strong performance in the same market, with a 27 % turnover increase in 2017.
Despite the higher turnover, Nike did suffer a 921 million dollar (750 million euro) loss following a US tax alteration. That forced it to pay more taxes, but without this changed legislation, profit would have been the same as the year before.