Nike’s China sales booms in latest report
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Booming sales by Nike China helped the sportswear giant record a 10 per cent rise in global revenues in the first quarter.
Footwear sales in greater China soared 26 per cent, apparel sales by 23 per cent and equipment sales by 8 per cent. Combined sales growth for the region was 24 per cent, from US$1.11 billion last year to $1.38 billion this year.
Nike China profit rose 27 per cent to $502 million, while combined Asia Pacific and Latin America sales rose 7 per cent to $1.27 billion.
“Nike’s consumer direct offense [program], combined with our deep line up of innovation, is driving strong momentum and balanced growth across our entire business,” said Mark Parker, chairman, president and CEO at Nike.
“Our expanded digital capabilities are accelerating our complete portfolio and creating value across all dimensions as we connect with and serve consumers.”
Revenues for the company’s Converse division rose 7 per cent to $527 million, mainly driven by growth in Europe and Asia.
Net income increased 15 per cent to $1.1 billion driven primarily by strong revenue growth and improved gross margin.
Questions & Answers
Q.What contributed to Nike's global revenue increase in the first quarter?
What contributed to Nike's global revenue increase in the first quarter?
Nike's global revenues rose 10 per cent, primarily driven by booming sales in its China division. This region saw significant growth in footwear, apparel, and equipment sales.
Q.How much did Nike China's profit increase in the latest report?
How much did Nike China's profit increase in the latest report?
Nike China's profit increased by 27 per cent in the recent report, reaching a total of $502 million. This strong performance highlights the region's contribution to the company's overall financial health.
Q.What initiatives does Nike attribute its strong momentum and growth to?
What initiatives does Nike attribute its strong momentum and growth to?
Nike attributes its strong momentum and balanced growth to its consumer direct offense program and its deep line-up of innovation. Expanded digital capabilities are also accelerating its portfolio and creating value.
Q.Which regions were key drivers for Converse division's sales growth?
Which regions were key drivers for Converse division's sales growth?
The Converse division saw a 7 per cent rise in revenues, primarily driven by strong growth in Europe and Asia. This contributed to the company's overall positive financial performance.
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