Nike earn­ings rise, bullish on China

Kuwait Times - - BUSINESS -

Nike re­ported higher sec­ondquar­ter earn­ings Tues­day be­hind in­creased sales in key mar­kets, in­clud­ing China, and said it was mak­ing progress in cut­ting in­ven­tory in North Amer­ica. Ex­ec­u­tives gave an up­beat out­look on China, where sales jumped 12 per­cent to $1.1 bil­lion. Net in­come for the quar­ter end­ing Novem­ber 30 rose seven per­cent to $842 mil­lion. Sales rose six per­cent to $8.2 bil­lion. Par­tic­i­pa­tion in the Shang­hai marathon was 38,000 and nearly four times that many tried to sign up, said Nike brand pres­i­dent Trevor Ed­wards.

“It’s still early days in un­lock­ing the growth,” Ed­wards said. Ex­ec­u­tives also touted run­ning shoe launches, a new flag­ship store in New York and a Michael Jor­dan-ori­ented shop in Paris. An­a­lysts have ex­pressed worry about Nike’s profit out­look in North Amer­ica due to ex­ces­sive sup­ply of ath­let­ics goods ap­par­ent in deep dis­counts in US stores this hol­i­day sea­son.

Gross profit mar­gins con­tracted com­pany-wide in the sec­ond quar­ter. Nike chief fi­nan­cial of­fi­cer Andy Cam­pion said the sports gi­ant is in the process of ad­dress­ing ex­cess sup­plies and that the key North Amer­ica re­gion should re­turn to profit-mar­gin growth in the next six months. “You will see ev­i­dence of the progress that we’ve made re­turn­ing North Amer­ica to pull market” or a market of strong de­mand, Cam­pion said. Shares of Nike rose 1.6 per­cent to $52.60 in af­ter-hours trade. —

Newspapers in English

Newspapers from Kuwait

© PressReader. All rights reserved.