Nike have been flying high in the quarter, namely the second one of 2019-2020 business year, as revenues reached 10.33 billion US dollars. They therefore increased by +10.2% on annual basis. For the records, such outstanding growth has gone beyond financial analysts’ expectations, which were about 10.09 billion dollars (data provided by IBES for Refinitiv). The same applies to net profits, which amounted to 1.12 billion dollars, therefore increasing by +31.6%. Profits per share have reached 0.70 dollars. In other words, they went remarkably beyond financial estimates, which were about 0.58 dollars. More specifically, talking about footwear manufacturing only, Nike’s quarterly revenues amounted to 6.2 billion US dollars, +12%.
Speeding up in China, not that much in the USA
Nike’s amazing performance in the quarter has been mostly driven by China, which proves to be the brand’s most rewarding market. In fact, in China earnings went up by 20%. Conversely, Nike’s “domestic market”, the North American one, turned out to be less brilliant. Here their sales have been rising by 5.3%, therefore going slightly below expectations issued by analysts at Wall Street. It is no coincidence that, right after making public the financial statements of the brand, Nike’s stocks decreased a little bit in value. A fierce competition, alongside several tensions caused by the Trade War, have been affecting the brand’s turnover in the USA.
The CEO’s comment
“In the second quarter of the year, Nike proved, once again, that innovation is still its best competitive asset. While turning athletes’ insight into innovative products and digital services, we manage to provide more buyers with a wider choice at faster pace”, commented Mark Parker, Nike President and resigning chief executive officer. “All of Nike team members are nourishing our current energy: I have never been more optimistic about the future of the company”.
Picture taken from nike.com