Sports brand Nike has managed to present better numbers than expected for the previous quarter. A large market share in Europe and a focus on items with high profit margins have helped to push Nike forward.
Turnover in the previous quarter rose from 6.97 billion dollars (5.47 billion euro) to 7.98 billion dollars (6.26 billion euro). Analysts had expected a 7.83 billion dollar (6.14 billion euro) turnover. Its first quarter net profit grew to 962 million dollars (755 million euro), coming from 779 million dollars (611 million euro) the year before.
Higher margins and a large market share have helped Nike reach these numbers. Its gross profit margin grew from 44.9 to 46.6 % in the first quarter, mainly because of higher shoe sales (+ 18 %), the company's most profitable branch.
Strong European numbers
Football product turnover growth reached double digits worldwide, thanks to the world championship football. For the first time ever, Nike had more sponsored teams at the world cup than its competitor Adidas.
Nike also managed strong growth in Europe, traditionally an Adidas stronghold. Its first quarter turnover, which ended on 31 August, grew 12 % in North America and 25 % in Western Europe, excluding exchange rate effects. In emerging markets, turnover grew 10 %.