Nike revenues jump 7% despite US sales drop
By Ben Stevens - Mar 26th 2018, 10:05
Sportswear giant Nike has seen revenues come in above expectations by $15 million (£10.6 million) over its third quarter, driven by strong growth across Asia.
In the three months to February 4, Nike saw total sales jump seven percent to $9 billion (£6.38 billion), pulling ahead of predictions of $8.85 billion (£6.25 billion).
Meanwhile, gross profits rose five percent to $4 billion (£2.84 billion), but gross margins dropped 70 basis points to 43.8 percent due to unfavorable currency fluctuations.
The rise in sales was largely driven by strong growth across Greater China and Europe, rising 15 and nine percent respectively.
Sales across Latin America also grew eight percent, but these rises were offset by a continuing slowdown across the US, dropping four percent to $3.5 billion (£2.48 billion), though this still represented its most significant area of income.
Renewed competition from Adidas and a slowdown in demand for athleisure has also reportedly reduced Nike’s market share.
Earlier this month Nike’s brand president Trevor Edwards departed after 25 years at the company, sparking a major reshuffle at senior level.
Though Edwards was not implicated, Nike also revealed there was “conduct inconsistent with Nike’s principles and we are taking the appropriate actions”.Retail Gazette
Checkers brings world-class retail to Constantia with new flagship store
27/11/2019 - 13:01
Checkers has opened the doors to its state-of-the-art 2 330 m² flagship supermarket at the Constantia Emporium as the retailer continues to take innovation to new heights.
Woolworths carves out market share in SA
27/11/2019 - 10:11
In Australia, David Jones's sales declined 2.1%, with the company saying a store refurbishment contributed to the decline.
Push and pull strategies work together to keep consumers coming back for more
26/11/2019 - 10:20
The retail sector is under increasing pressure as consumers have shrinking disposable income in a strained economy. Maintaining share of wallet is critical. Relying solely on a push route to market strategy from manufacturers into retailers is not enough to get consumers buying products. A pull strategy needs to coexist with the push to drive brand consumption. Integrating these strategies requires intelligent and insightful decision-making. This, in turn, requires data generated through smart technology which provides line of sight across the value chain from manufacturer to distribution, retailer to the consumer.
Exclusive leases must fall: Commission cracks whip on Shoprite, Pick n pay, Spar, Woolies
26/11/2019 - 09:57
The Competition Commission Inquiry into Grocery Retail, published on Monday, called for an end to the exclusive leases negotiated by national retail chains in all shopping malls across the country in a bid to open up access to markets for smaller players.
Today’s customers are loyal to speed and convenience, not brands
25/11/2019 - 11:15
Consumer expectations are rapidly shifting as technologies such as mobile, geolocation, social media and increasingly, Internet of Things devices and wearables, connect people to a world of easily accessible information and convenient services. With the ability to browse, compare and order with a few swipes and taps, consumers are becoming trained to value convenience and service above nearly anything else.