Nike Recorded A Substantial Growth In First Quarter Performance

The Nike Inc. (NYSE:NIKE) Nike group, the world's largest sporting goods manufacturer, has recorded a substantial increase in the first quarter results of its 2015 financial year after the closing of the US stock market, stimulating its stock price to rise sharply from 7.36% to 85.60 U.S. dollars.

The group achieved net profit of $962 million in the first quarter of August 31st, an increase of 23.5% over the same period last year of $779 million, and the diluted earnings per share rose from $0.86 to $1.09, far exceeding the $0.88 expected by the market.

The Brazil world cup has greatly promoted the sales of Nike Nike's soccer shoes and clothing, while American consumers have also made extra income by buying sportswear as their daily clothing.

Group income in the first quarter totaled 7 billion 980 million US dollars, higher than the market forecast of US $7 billion 780 million.

Up 14.5% over the same period.

Gross profit margins benefited from the increase in the share of Flyknit and other high margin products and directly to the strong growth of consumer channels, an increase of 170 basis points to 46.6%, compared with 44.9% in the same period last year.

Over the past few years, the second major markets, which have struggled with inventory pressure and are hard to sustain growth, are increasing by 18.3% to 679 million US dollars in the Greater China region, 12.1% to 3 billion 513 million US dollars in North America, 31.7% to 1 billion 714 million in Western Europe, 7.1% to 366 million dollars in central and Eastern Europe, and 3.5% and 1.3% in the emerging markets and Japan respectively.

Press

Nike Nike's revenue rose 14.7% to $7 billion 421 million compared to the same period last year. Converse CONVERSE's revenue was $575 million, an increase of 16.4% over the same period last year.

By category, Nike Nike brand footwear revenue recorded an increase of 18.1%, while clothing and equipment increased by 10.6% and 4.6%, respectively.

And sales of golf products declined.

Disclosure and cancellation

After the factor, the total value of orders shipped in 9-11 months increased by 14% year on year, and the market expected to increase by 10%, of which the largest market growth in North American orders was 15%, which was 9.8% higher than the market forecast, but the growth rate of 6% in the Greater China region was less than that of the market forecast.

In a conference call after the earnings report, the group said that the annual diluted earnings per share will grow by 20%, and the market forecast will increase by 14%. The gross profit margin of the whole year is expected to increase by 125 basis points over the same period last year.

In contrast, Nike Inc. (NYSE:NIKE) Nike group's biggest competitor, Adidas AG (ADSGn.DE) Adidas group, the second largest sporting goods manufacturer in the world, issued a profit warning because of the unstable situation in Russia and the demand for golf equipment in North American market. It warned that the performance targets of the two and next two years could not be reached.