Nike innovation program on track, execs assure investors
Nike’s fiscal third-quarter revenue stood flat at US$12.43 billion amid minimally higher sales in North America, Greater China, and Asia Pacific and Latin America.
But management has moved to reassure investors the company’s turnaround program is on track and already bearing fruit.
The sports apparel company’s revenue grew 3 per cent to $5.07 billion in North America and 5 per cent to $2.08 billion in Greater China. Asia Pacific and Latin America revenue jumped 3 per cent to $1.65 billion.
However, Europe, Middle East, and Africa (EMEA) revenue dropped 3 per cent to $3.14 billion. Revenue of global brand divisions, representing Nike’s licensing businesses, plunged 25 per cent to $9 million.
In terms of product category, footwear revenue rose 2 per cent to $8.16 billion while apparel revenue fell 3 per cent to $3.29 billion. Equipment revenue climbed 21 per cent to $487 million.
“We are making the necessary adjustments to drive Nike’s next chapter of growth,” Nike president and CEO John Donahoe said.
“We’re encouraged by the progress we’ve seen, as we build a multiyear cycle of new innovation, sharpen our brand storytelling and work with our wholesale partners to elevate and grow the marketplace.”
“Our teams are focused on what matters most to return to strong growth,” added Matthew Friend, executive VP and CFO. “We are taking action to build a faster, more efficient Nike and maximise the impact of our new innovation cycle.”
The company’s gross margin increased to 44.8 per cent while net income slid 5 per cent to $1.17 billion.
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