The American fashion and sports equipment giantNike, has ended the first nine months of the year (closed in February) with an increase in sales of 10.8% compared to the first nine months of 2019 and the result rose by 9.2%.
The billing Has been of €9.9 billion in the third quarter of its fiscal year, a 5% growth. More positive results than expected, as the production blockades in Asia were not very encouraging for the company. The net profit fell to €1.3 billionbecause the manufacturer increased investments in marketing and technology.
Nike’s strongest growth has been seen in North America, while in China sales declined. In addition, sales in Russia and the Ukraine have come to a standstill.
“Strong quarterly results show Consumer Direct Acceleration strategy is working“, has explained John Donahoe, President and CEO of Nike, it’s a statement. sales of Nike Direct increased by 15% ($4.6 billion), due to a normalization of traffic in its own stores. However, digital sales increased by 19%
“Results demonstrate Nike’s ability to navigate through volatility while continuing to serve our consumers”, he pointed out for his part Matt Friend, Group CFO.
The company did not talk about forecasts for the new year.
The analyst of GlobalDataEmily Salter has offered her opinion: «NIKE’s drive to dominate direct-to-consumer selling continues, with NIKE Direct sales up 17% on a currency-neutral basis, with sales at its physical stores growing 14% despite declines in the Americas North and Greater China. As the brand continues to reduce its presence in the wholesale market, recently ending partnerships with the likes of Footlocker, Very.co.uk and DSW, revenue from wholesale was lower than the total business, as only increased a slight 1%. These recalls will affect the affected retailers, but will help cement shopper loyalty and product exclusivity at NIKE, and demonstrate the brand’s confidence in its ability to drive shoppers to its own channels, with its innovative environments. in stores, its market-leading online offering, and a series of apps to increase the number of touchpoints with your shoppers.«