Nike revenues jump 7% despite US sales drop

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Nike

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 per cent to $9 billion (£6.38 billion), pulling ahead of predictions of $8.85 billion (£6.25 billion).

Meanwhile gross profits rose five per cent to $4 billion (£2.84 billion), but gross margins dropped 70 basis points to 43.8 per cent due to unfavorable currency fluctuations.

The rise in sales was largely driven by strong growth across Greater China and Europe, rising 15 and nine per cent respectively.

Sales across Latin America also grew eight per cent, but these rises were offset by a continuing slowdown across the US, dropping four per cent 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”.

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