American sports brand Nike has achieved a higher-than-expected turnover in its fiscal year 2017, thanks to increased demand in Western Europe, China and several emerging markets.
Strong net profit increase
Nike’s fourth quarter turnover grew 5 % to 8.7 billion dollar (7.6 billion euro), more than what analysts had expected at 8.63 billion dollar (7.6 billion euro). Net profit grew 19 % to 1 billion dollar (876 million euro), despite a lower gross margin, as the company did manage to lower costs.
Turnover went up 6 % for its full fiscal year 2017, to 34.4 billion dollar (30.1 billion euro) and net profit followed suit, with a 13 % increase to 4.2 billion dollar (3.68 billion euro). Its eponymous brand's retail turnover grew 18 % to 9.1 billion dollar (7.98 billion euro), mainly thanks to a 30 % online sales surge and an increased store network from 919 to 985 stores. Converse published a 6 % turnover increase to 2 billion dollar (1.75 billion euro), thanks to growth in the United States and Europe.
Moving forward in China
Nike’s biggest improvement was in China, where turnover jumped 12 % to 4.2 billion dollar (3.7 billion euro), but Western Europe also performed well, with a 6 % turnover increase in its past fiscal year. The company also performed well in the emerging markets, with an 8 % turnover increase to 3.99 billion dollar (3.5 billion euro).
“Nike continues to create both near-term wins in today’s dynamic environment and a lasting foundation for future growth,” said CEO Mark Parker. “Through our Consumer Direct Offense, we’re putting even more firepower behind our greatest opportunities in Fiscal 2018. It will be a big year for Nike innovation and we’ll bring those stories to life through deeper consumer connections in our key cities around the world.”