Nike’s North America Sales Weaken As Execs Look for Innovation Cure

Print Friendly, PDF & Email

Nike Inc. leans on international sales to compensate for challenges at home and preps a slate of new products to break the malaise.

In a nutshell: Nike is in a rut in North America. Growth for the Beaverton, Oregon-based company was led by international markets as North America sales declined for the second straight quarter. The brand finds a glimmer of holiday hope in its Nike Direct business, which continues to outpace its wholesale marketplace.

Sales: Sales for Nike Inc. ending Nov. 30 increased 5 percent to $8.6 billion. Revenues for the Nike Brand were up 4 percent to $8.1 billion, driven by EMEA, Greater China and Asia Pacific regions and growth in the sportswear and Nike Basketball categories. Sales for Converse were $408 million, down 4 percent as international growth was more than offset by declines in North America.

Earnings: Net income dipped 9 percent to $767 million as a decline in gross margin and higher selling and administrative expense more than offset revenue growth and a lower tax rate.

CEO’s Take: “This quarter, led by our Consumer Direct Offense, we accelerated international growth and built underlying momentum in our domestic business,” said Mark Parker, Nike Inc. chairman, president and CEO. “For the back half of the fiscal year, Nike’s innovation line-up is as strong as it’s ever been and we’ll continue to actively shape retail through new differentiated experiences.”

On a conference call with analysts, Parker added: “We’re entering the second half of the year with a wave of new products and concepts. Consumers want fresh, innovative products, and they want choice, and right now, our innovation cycle is delivering against those demands.”

This content is for Annual, Monthly and Limited members only. You can read up to five free articles each month with a Limited Level Subscription. Please log in, or register.
Log In Register

Recent News

Tommy Hilfiger on Innovation, Instant Gratification and Courting the Instagram Generation

Tommy Hilfiger credits his brand's staying power to tapping into the fountain of youth, whether that means teaming with Gigi Hadid or jumping on nascent AI technology.

This content is for Annual, Monthly and Limited members only. You can read up to five free articles each month with a Limited Level Subscription. Please log in, or register.
Log In Register
Read more

Maersk and IBM Forming Blockchain Joint Venture to Digitize Supply Chains and Improve Trade Flow

A.P. Moller - Maersk and IBM said they intend to establish a joint venture to provide more efficient and secure methods for conducting global trade using blockchain technology.

This content is for Annual, Monthly and Limited members only. You can read up to five free articles each month with a Limited Level Subscription. Please log in, or register.
Log In Register
Read more

Norway’s Move to Ban Fur Farms Brings Praise and Criticism

In a move that was both political and a recognition that fur has fallen out of fashion even in a nation that was once the world’s top producer of fox pelts, Norway’s government has decided to phase out fur farms by 2025.

This content is for Annual, Monthly and Limited members only. You can read up to five free articles each month with a Limited Level Subscription. Please log in, or register.
Log In Register
Read more

See How Walmart is Positioning to Move at the Speed of Innovation

Despite its smaller, nimbler competitors, Walmart is determined to be a disruptor in this new retail landscape and its technology incubator Store No. 8 is leading the charge.

This content is for Annual, Monthly and Limited members only. You can read up to five free articles each month with a Limited Level Subscription. Please log in, or register.
Log In Register
Read more

5 Trends Taking Over the Latin American Footwear Market for Fall ’18

As Brazil continues to emerge from its economic crisis and shoppers are starting to spend again, women’s fashion footwear trends are channeling some of that same cautious but confident energy.

This content is for Annual, Monthly and Limited members only. You can read up to five free articles each month with a Limited Level Subscription. Please log in, or register.
Log In Register
Read more