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.
