![]() Outside China, Nike saw double-digit sales increases in all of its other markets. And the key to winning in this market is simply put: having great innovation and connecting with Chinese consumers in a locally relevant way," Donahoe said. There's a desire for innovation and style. Sport and wellness is a key trend and tailwind there. "The fundamentals of this market are good, right? It is a very large market that's growing. ![]() When asked about its outlook on China's recovery, Nike CEO John Donahoe said the company feels good about its momentum in the region and saw growth "really pick up" in the second month of the quarter after lockdowns ended. While some activity has begun to pick up, consumers aren't back to pre-pandemic shopping levels just yet, according to a Citi research note. Sales in China have been soft as consumers contended with sweeping lockdowns and rising infections. Wall Street analysts had anticipated sales in the region of $2.09 billion, according to StreetAccount estimates. Sales in the region fell 8% during the third quarter to $1.99 billion, despite the end of the country's zero-Covid policy that had weighed on operations. But those hopes have failed to materialize. Nike has been looking for a sales rebound in China, its third-biggest market by revenue, as the region recovers from the Covid pandemic. Here's how the sneaker giant performed in its third fiscal quarter of 2023 compared with what Wall Street was anticipating, based on a survey of analysts by Refinitiv: They also expect to see "even leaner inventory" than they'd anticipated given sales momentum, the executives added. Quarter over quarter, Nike offloaded about $400 million in inventories.ĭuring an earnings call with investors Tuesday, executives said they're "increasingly confident" Nike will exit the fiscal year with healthy inventory levels. Inventories were up 16% compared with the year ago period at $8.9 billion, which the company attributed to higher product input costs and elevated freight expenses. While Nike CEO John Donahoe told investors last quarter he believes the company is past its inventory peak, the company warned gross margins were expected to take a hit during the holiday quarter. Gross margin fell to 43.3% for the quarter, a decrease of 3.3 percentage points, due to higher markdowns and promotions the company used to liquidate its inventory. ![]() ![]() Personal Loans for 670 Credit Score or Lower Personal Loans for 580 Credit Score or Lower In addition to manufacturing sportswear and equipment, the company operates retail stores under the Niketown name.Best Debt Consolidation Loans for Bad Credit Nike also owned Bauer Hockey from 1995 to 2008, and previously owned Cole Haan, Umbro, and Hurley International. Nike markets its products under its own brand, as well as Nike Golf, Nike Pro, Nike+, Air Jordan, Nike Blazers, Air Force 1, Nike Dunk, Air Max, Foamposite, Nike Skateboarding, Nike CR7, and subsidiaries including Air Jordan and Converse. The company takes its name from Nike, the Greek goddess of victory. The company was founded on January 25, 1964, as "Blue Ribbon Sports", by Bill Bowerman and Phil Knight, and officially became Nike, Inc. It is the world's largest supplier of athletic shoes and apparel and a major manufacturer of sports equipment, with revenue in excess of US$46 billion in its fiscal year 2022. ![]() The company is headquartered near Beaverton, Oregon, in the Portland metropolitan area. is an American multinational corporation that is engaged in the design, development, manufacturing, and worldwide marketing and sales of footwear, apparel, equipment, accessories, and services. ![]()
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