Nike sales saved by basketball sector
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A rebound in basketball drove strong Nike sales and profit growth in the last quarter.
The US-headquartered sports giant has reported a profit rise of 7.3 per cent to US$842 million in the three months to November 30, with sales up 6.4 per cent, to $8.18 billion. Excluding the impact of currency rates, profit rose 8 per cent.
Sales in the basketball category, which includes its Jordan brand, accounted for 15 per cent of wholesale revenue in 2016. And even greater growth is expected in the next quarter after the brand lost momentum in the core category in previous periods.
“We’re seeing incredible momentum in basketball,” said Trevor Edwards, president of Nike Brand. “To be clear, basketball is back.”
Sales in China rose 12 per cent, and in the US by 3 per cent.
Nike has moved to drive more direct sales, improved its online sales apps and adjusted pricing on some of its marquee products, including basketball shoes.
Questions & Answers
Q.What was the total profit reported by Nike in the last quarter?
What was the total profit reported by Nike in the last quarter?
Nike reported a profit of US$842 million in the three months to November 30. This represented a profit rise of 7.3 per cent compared to the previous period.
Q.Which specific product category was responsible for Nike's recent sales growth?
Which specific product category was responsible for Nike's recent sales growth?
A rebound in the basketball category, which includes its Jordan brand, drove strong Nike sales. This sector accounted for 15 per cent of wholesale revenue in 2016.
Q.How did sales perform in Nike's two largest markets, China and the US?
How did sales perform in Nike's two largest markets, China and the US?
Sales in China increased by 12 per cent during the period. In the US, sales rose by 3 per cent, contributing to the overall positive results.
Q.What strategies did Nike implement to boost its sales performance?
What strategies did Nike implement to boost its sales performance?
Nike moved to drive more direct sales, improved its online sales applications, and adjusted pricing on some of its prominent products, such as basketball shoes.