US-based sports giant, NIKE has announced six months financial results for the period ending on 30th November, 2016 which reveal that China has overtaken Western Europe for the brand by noting 19 per cent increase in sales, taking the revenue to US $ 2.08 billion.
The sportswear brand recorded an overall revenue of US $ 16.183 billion, up 9 per cent, in the period under review. Sales have increased across all markets: North America remains the mainstay, with US $ 7.681 billion (+5 per cent), followed by US $ 3.148 billion (+11 per cent) by Western Europe. But China, third-placed in revenue was the most dynamic region which offered the Group’s best profitability performance. Over the six-month period, the NIKE brand recorded a stable overall EBIT at US $ 2.545 billion, despite losses for US $ 1.390 billion by its Global Brand Division, dealing with licensing contracts.
NIKE’s President Trevor Edwards explains, “Mainland China continues to deliver a solid performance, with ten consecutive quarters featuring double-digit growth, and yet another quarter with triple-digit growth for nike.com.”
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During the period, North America contributed with US $ 1.916 billion, while Western Europe’s profit contribution fell by 21 per cent to US $ 628 million, and so did that of the other European markets with US $ 139 million. Emerging markets too have lost ground, falling by 18 per cent to US $ 408 million. While Japan, after a string of troubled seasons, rose by 18 per cent to US $ 98 million, China rescued the brand by growing at 14 per cent, reaching US $ 746 million.
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