Nike Is Gaining Momentum And Will Continue To Win Adidas Market Share.

　　 Nike There is no doubt that the world's first sports shoes brand, regardless of Skechers, Adidas Hard work with Under Armour can hardly shake its status. But in the 2014-2015 fiscal year, the value of Nike's brand creation surprised the industry.

The official earnings report of the brand shows that Nike's annual turnover amounted to US $30 billion 600 million, an increase of 10% over last year. As of May 31, 2015, Nike's fourth quarter revenue grew by 5%, excluding exchange rate effect and revenue growth by 13%. It is worth noting that Nike's turnover in North America has increased by 14% and Western Europe's turnover has increased by 17%. Diluted earnings per share increased by 26% during the quarter, mainly benefiting from the general revenue growth, gross margin expansion and low tax rates of global stores.

Company president and CEO Mark Parker said: "fiscal year 2015 is an excellent year for Nike. Our ability to interact with consumers and our company's innovation capabilities have reached unprecedented growth and scale, which is the source of power to brand growth. The growth potential of Nike brand has reached the commanding heights of history.

A number of reasons have led to Nike's full bowl this year. At the recent conference call, the brand pointed out that the growth was attributed to the successful launch of several lifestyle products, such as Roshe Run and Air Max 1. Basketball shoes have also seen strong growth, but Nike CEO Mark Parker is seeking more technological breakthroughs to help the brand continue to gain success.

Parker said: "Flyknit technology has always been one of the biggest breakthroughs for athletes and our company." NPD analyst Matt Powell estimates that Nike has sold about 350 million pairs of sneakers in the past year. For Adidas, there is still a long way to go to surpass Nike.

The following is the interpretation of Nike's fourth quarter earnings:

Nike's revenue rose by 5% to $7 billion 800 million, up 13% on the basis of neutral money.

Nike's brand revenue was $7 billion 400 million, a 13% increase on the basis of neutral money. It has benefited mainly from the growth of almost all global stores and major product categories, apart from emerging markets and football categories.

　　· CONVERSE The brand revenue was 435 million dollars, and the neutral currency grew by 14%. Mainly because of the spanformation of market allocation, the direct business in Austria, Germany and Switzerland, and the strong performance of the brand in the US market are achieved.

The gross profit margin of the company increased by 60 basis points, reaching 46.2%. The main reason for the increase is the increase in average selling price and the continued high profit in direct selling business, some of which are offset by the increase in product input and logistics costs.

Sales and management expenditure increased by 6% to $2 billion 600 million. The demand for innovation was $819 million, down 7% from last year, mainly due to the high sponsorship of the world cup in the 2014 fiscal year. Operating expenses increased by 13% to $1 billion 800 million, mainly due to higher investment costs in expansion of direct business, infrastructure and user oriented digital business development capabilities.

Other net income is $58 million, including net foreign currency exchange proceeds. During the quarter, the company's annual foreign exchange gains and losses were included in the projection of net income for other projects, plus the effect of exchange rate changes in the actual conversion process, minus about $37 million in pre tax income.

The effective tax rate of the company was 17.8%, compared to 23.5% last year. Mainly due to the reduction of tax and fee adjustments during the spanition period in the end of fiscal year 2015.

Net income increased 24% to $865 million, diluted earnings per share rose 26% to $0.98, mainly driven by strong income growth and gross margin expansion, low tax rates and a decrease in average diluted share weight.

Annual income in fiscal year 2015

Nike's revenue grew by 10% to $30 billion 600 million, an increase of 14% on the basis of neutral money.

Nike's brand revenue was 28 billion 700 million dollars, excluding the impact of exchange rate changes, an increase of 14%.

On the basis of neutral money, the turnover of Nike brand for wholesale customers increased by 10%, while the direct business revenue increased to $6 billion 600 million, excluding the impact of exchange rate changes, an increase of 29%. The year-on-year turnover increased by 16%, the sales volume of online sales increased by 59%, and the turnover of new stores also increased. As of May 31st 2015, Nike brand stores increased to 832 from 768 last year.

On the basis of a neutral currency, Nike's global stores have grown, and all key product categories, including women's, men's and young sports series, have grown, except for Global Football.

CONVERSE's revenue was $2 billion, an increase of 21% on the basis of neutral money. Mainly because of the spanformation of market allocation, the direct business in Austria, Germany and Switzerland, and the strong performance of the brand in the US market are achieved.

Gross margin increased by 120 basis points to 46%. The main reason for the increase is the increase in average selling price and the continued high profit in direct selling business, some of which are offset by the increase in product input and logistics costs.

Sales and administrative expenses increased by 13% to $9 billion 900 million. Innovative demand expenditure increased by $3 billion 200 million, an increase of 6%, mainly for key activities and product launches, as well as investment in direct marketing and sports market development. Operating expenses increased by 16% to $6 billion 700 million, mainly due to higher investment costs in expansion of direct business, infrastructure and user oriented digital business development capabilities.

In the current fiscal year, other net income was $58 million. In this year, the company's annual foreign exchange gains and losses are included in the projection of net income for other projects, plus the effect of exchange rate changes in the actual conversion process, minus about $73 million of pre tax income.

The effective tax rate is 22.2%, compared to 24% last year, mainly benefiting from the good settlement of tax audit issues across multiple jurisdictions.

Net income rose 22% to $3 billion 300 million, reflecting strong revenue growth momentum, gross margin expansion and low tax advantage. Diluted earnings per share rose 25% to $3.7, reflecting the increase in net income and the decrease in average diluted share weight.

Sports and leisure trends are not only fashionable among retail consumers today. It is also popular in Wall Street.

Sports retail giants like Nike have achieved great success in a wider range of retail and clothing sales. They have made more and more Americans bring their running equipment, yoga pants and basketball shoes from the gym to the streets. The new fabrics, colors and styles have created a brand new buzzword, sports and leisure style, to describe fashionable sportswear.

Nike has gained much more than expected turnover and profits, all of which benefited from the new trend of "sports and leisure". Last Friday, Nike's stock price rose again, and investors were optimistic about the company's outlook.

Analysts predict that the company will continue to take away its main competitor Adidas's market share, including Adidas's struggling Western European local market and key US market. "We believe Nike will continue to win Adidas's market share," said Sam Poser, analyst at Sterne Agee.

Because of the momentum of sportswear, the price of many sportswear manufacturers is rising and there is no sign of decline. At the same time, more retailers, including H&M and Urban Outfitters, are also expanding the brand of sportswear to cater for this trend. However, it is clear that pure sportswear manufacturers such as Nike, Under Armour and Lululemon have more prominent advantages in this regard. Analysts believe that the good scene of sportswear will continue in the coming year. Nike said its futures orders were 13% higher than the same period last year, which is clearly an important signal for future high demand for sportswear.

Millward Brown advertising company announced the results of the tenth annual BrandZ world's most valuable brand ranking in 2015. A news point is worth noting: Nike ranks first among the most valuable clothing brands. Note that it is not the most valuable sportswear brand, but the most valuable clothing brand. Nike ranked twenty-eighth in the overall ranking of top 100 brands, while it defeated ten of the top ranked brands in the clothing industry. Zara H&M, Ralph Lauren, Hugo Boss and Tommy Hilfiger become number one. In the conventional fashion category, it also beat Louis Weedon (luxury goods ranked thirty-second) and Hermes (luxury goods ranked fifty-fifth).

Nike's rankings reflect some interesting things - the name "sportswear", which is not properly named, is rising as a fashion trend, and most importantly, this ranking reflects Nike's ambition.