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    Nike Said It Will Substantially Increase Its Price In 2012.

    2011/3/28 11:55:00 42

    Selling Nike Products

    The world's largest sportswear and sportswear manufacturers

    Nike

    The company (Nike) said recently that it will substantially increase prices in 2012, reflecting the rise in oil, cotton, wages and pportation costs and eroding the company's profits.


    Nike finance chief Blair (DonBlair) told analysts at a recent conference call: we expect that the adverse factors will continue, and we will increase a lot from 2012.

    product

    The price.

    Nike expects higher production costs and greater pressure on profits this quarter.


    This proves that the increase in production costs has hurt Nike Ju's profits, and Nike's profit margins will be under heavy pressure this year, OakBrook said.


    Nike announced that the profit in the third quarter of February increased by 5.2% to $523 million, equivalent to $1.08 per share, higher than the 497 million US dollars in the same period last year or 1.01 US dollars per share, but still lower than analysts' average expected US $1.12 per share.


    Last quarter revenue increased 7.3% to $5 billion 80 million, while Nike store sales increased by 13%.


    The gross profit margin in the third quarter dropped by 1.1 percentage points to 45.8%. The main reason is that besides the increase of production cost, the increase of product air freight to satisfy consumers also makes profits lower.

    Nike expects the gross profit margin in the quarter to be reduced by 3 percentage points over the same quarter last year, but the pressure on profit margins will decrease as prices begin to rise.


    Nike sales growth in the third quarter is not evenly distributed, North America and China.

    Sale

    They increased by 9% and 21% respectively, but decreased by 2% in Western Europe and 8% in Japan.


     
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