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Nike Greater China sales down 3 percent

Nike Inc. announced on December 20 total revenues for the second quarter surged 17 percent to USD 13.3 billion, on the back of double-digit sales growth in North America and Europe, offsetting single digit declines in its Greater China business.

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Analysts had expected USD 12.57 billion, according to IBES data from Refinitiv.

By region, Nike Greater China revenues fell 3 percent to USD 1.78 billion, from USD 1.84 billion In the prior-year period. Footwear sales in the region grew 11 percent to 1.37 billion USD, offset by declines in apparel, and equipment, down 30 percent and 44 percent, respectively.

Elsewhere, the American company’s Asia Pacific and Latin America region grew 19 percent to 1.6 billion USD, and its North America region surged 30 percent to 5.83 USD billion, while sales in Europe grew 11 percent to 3.49 billion USD.

The Portland, Oregon-based company said revenues for its Nike brand were USD 12.7 billion, up 18 percent on a reported basis, with strong growth across all geographies and channels.

Revenues for Converse were USD 586 million, up 5 percent, led by double-digit growth in North America, partially offset by declines in Asia.

By channel, Nike direct sales were USD 5.4 billion, up 16 percent and Nike brand digital sales increased 25 percent. Wholesale revenues grew 19 percent.

​Net income for the quarter ending November 30 was USD 1.3 billion, flat compared to prior year, and diluted earnings per share was USD 0.85, increasing 2 percent.

“Nike’s results this quarter are a testament to our deep connection with consumers,” said John Donahoe, president and CEO, Nike, Inc.

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“Our growth was broad-based and was driven by our expanding digital leadership and brand strength. These results give us confidence in delivering the year as our competitive advantages continue to fuel our momentum.”