China and Emerging Markets Cause Nike Brands to Resume Growth

China and Emerging Markets Cause Nike Brands to Resume Growth

At retail, Nike resumed growth primarily due to a 7% to 3.4 billion euros increase in sales in the third quarter (as of February 28). This increase was partly due to the good performance of emerging markets and the Chinese market.

Sporting apparel giant Nike reported third-quarter earnings after the close on Wednesday that increased its profit from $244 million, or 50 cents per share, to $496 million, or $1.01 per share, for the same period last year. Sales increased by 7% from $4.4 billion in the same period last year to $4.7 billion.

Analysts surveyed by FactSet Research had expected their average earnings per share of 89 cents, with revenue of $5.59 billion.

At retail, Nike resumed growth primarily due to a 7% to 3.4 billion euros increase in sales in the third quarter (as of February 28). This increase was partly due to the good performance of emerging markets and the Chinese market.

During this period, European sales increased by 4% to 669 million euros. This was mainly due to the increase of 8% in shoes to 421 million euros. In contrast, apparel and sports goods decreased by 1% and 4%, respectively. The net operating surplus was unchanged at 145 million euros.

The best brand performance is in China and emerging markets. Sales in the Chinese market rose by 10% to 334 million euros (12% for sneakers and 8% for apparel). Emerging markets performed best with sales up 43% to 372 million euros (among which 53% for shoes and 32% for clothing).

Another big good news is that orders have risen by 9% overall, while the European market has increased by 4%.

As for other brands such as Cole Hann, Converse Hurley International, Nike Golf and Umbro under the group, its turnover increased by 13% to 479 million euros.