Nike sees double digit growth in turnover and net profits | RetailDetail

Nike sees double digit growth in turnover and net profits

American sportswear producer Nike announced a huge growth for both its turnover and its profit in its most recent financial quarter. In the June-August period, Nike's turnover went up 18% while net profits increased by 15%.

Most of Nike's turnover growth was realised in emerging markets with an amazing +35%. In Europe the group only managed a zero-growth, but favourable exchange rate fluctuations allowed Nike to account a +14% growth. In all other regions, turnover grew significantly faster. Net profits went up 15% to 645 million dollar (almost half a billion euro), as both profits and turnover exceeded analysts' expectations.

Not all news was good though: Nike's margins suffered from higher prices for raw materials and other costs. The company's gross margin went down 270 basis points to 44.3%. Still, the Oregon headquarters proudly call it “a strong start to 2012” - as Nike's financial year starts 1 June. The brand's optimism might come from a huge growth in futures orders: sportswear for a total of 8.5 billion dollar (over 6 billion euro) has been scheduled for delivery from September 2011 through January 2012 – 16% more than in the same period a year earlier.

American sportswear producer Nike announced a huge growth for both its turnover and its profit in its most recent financial quarter. In the June-August period, Nike's turnover went up 18% while net profits increased by 15%.

Most of Nike's turnover growth was realised in emerging markets with an amazing +35%. In Europe the group only managed a zero-growth, but favourable exchange rate fluctuations allowed Nike to account a +14% growth. In all other regions, turnover grew significantly faster. Net profits went up 15% to 645 million dollar (almost half a billion euro), as both profits and turnover exceeded analysts' expectations.

Not all news was good though: Nike's margins suffered from higher prices for raw materials and other costs. The company's gross margin went down 270 basis points to 44.3%. Still, the Oregon headquarters proudly call it “a strong start to 2012” - as Nike's financial year starts 1 June. The brand's optimism might come from a huge growth in futures orders: sportswear for a total of 8.5 billion dollar (over 6 billion euro) has been scheduled for delivery from September 2011 through January 2012 – 16% more than in the same period a year earlier.

Questions or comments? Please feel free to contact the editors


Hoegaarden moves part of production to Vietnam and China

18/05/2018

Hoegaarden experiences strong growth in Asia, but is losing ground in Europe. That is why AB InBev will move part of the production to China and Vietnam: the brewery in Hoegaarden will lower cut its production days by 2 a week.

Holland & Barrett wants vegan stores

17/05/2018

British health chain Holland & Barrett (previously known in the Benelux as Essenza) plans to open completely vegan stores, a trend the chain needs to follow according to CEO Peter Aldis.

Nestlé on a diet: cuts back sugar, fat and salt levels

17/05/2018

Nestlé wants to lower its sugar, salt and fat levels to play into the global demand for healthier food.

Analysis: six reasons major brands are under pressure

17/05/2018

Global brands are increasingly struggling to ward off smaller, local companies. Some even believe the brands’ golden age has passed. That may be presumptuous, but there are some noticeable trends.

Coca-Cola is strongest global brand, but local brands are on the rise

17/05/2018

Coca-Cola, Colgate and Maggi are the most popular FMCG brands worldwide, according to a Kantar Worldpanel report. Local brands are stealing market share however.

Amazon Prime members get additional discount at Whole Foods

17/05/2018

Amazon Prime members will get an additional discount on hundreds of Whole Foods products, the chain it acquired in June 2017. Specialists claim there is a clear strategy behind these discounts.