For the first time since last four quarters, Nike’s North American sales increased, posting a growth of 3%, at US $ 3.875 billion. The brand rose above its flat sales from the previous year around the same time. It also noted an increased revenue of 14% — 9% at US $ 9.269 billion, including double-digit percentage growth in and Global Football, NIKE Direct and Sportswear.
Many transformative initiatives can be held responsible in helping Nike get its mojo back. While battling intense competition form Puma and Adidas, digitalisation of the entire company set the next wave for long term growth which would be sustainable and profitable.
Nike has also focused on new launches. The brand has around eight launches which comprise of Kendrick Lamar’s Cortez Kenny III line of shoes and Air Max 270. The improvement and focus on direct-to-customer model for anchor stores and online sales, and strategic partnership with Amazon.com are accountable for its stitch in time.
While trade analysts expected a growth of 64 cents per share, the brand registered 69 cents per share, excluding the one-time use items. To rest the completion of its existing buy-back, Nike announced a new four-year, US $15 billion repurchase program authorisation.
Being the third biggest gainer, Nike’s stock nearly rose a 14.6 per cent this year. Stomping the expectations, Nike isn’t just back to compete with rival brands in sportswear and lifestyle offerings but has gained the trust of its investors as well.
