Nike performs better than expected | RetailDetail

Nike performs better than expected

Nike performs better than expected

Nike has performed better than expected in the past quarters, with North American and European sales contributing a lot. The increased sales leading up the World Championship football in Brazil have also helped.

Increase in large markets

Sports brand Nike's fourth quarter, which ended on 31 May, has seen North American turnover increase 10 %, while Western European sales grew 18 % if exchange rate fluctuations are ignored. More than half of Nike's turnover comes from these two markets, which have helped total turnover to grow 11 % to 7.4 billion dollars (5.43 billion euro).

 

Turnover for its full fiscal year 2014 climbed 10 % to 27.8 billion dollars (20.4 billion euro). "Nike is the number one brand in each of the top 10 cities in Western Europe", Nike brand president Trevor Edwards told Reuters.

 

Marketing prior to and during WC

Nike also spent 36 % more in marketing in its fourth quarter, like the "Winner Stays" ad which has been viewed more than 82 million times on Youtube. Marketing costs should also grow 30 % this quarter in order to take advantage of football's popularity during the World Championships.

 

For the first time ever, more teams at the World Championships are wearing Nike than Adidas, while there are more people in a Nike outfit than in all other brands put together.

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