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    Nike Sports Shoes And Clothing Business Needs To Slow Down In The Future

    2016/9/30 11:56:00 132

    NikeSports ShoesClothing

    This Tuesday,

    Nike

    The company's revenue report shows that its quarterly sales increased by 8%, but

    Gym shoes

    and

    clothing

    The slowdown in demand in the future has led investors to worry about the market outlook of sports apparel.

    Nike said its global future orders, the order volume in the next 6 months, will increase by 5% in January 2017, and 9% in the same period last year.

    North America is Nike's main commercial battleground, but Nike's future orders in the first quarter of North America grew by only 1%, compared with 14% in the same period last year.

    Some analysts have pointed out that the number of future orders is a measure of market demand for Nike products.

    In the post trading session on Tuesday, Nike shares fell 2% to 54.19 U.S. dollars and rose to 55.34 at 4 p.m.

    A significant change is that Andy Campaign, chief financial officer of Nike, said on Tuesday that Nike would no longer report the number of future orders at the quarterly earnings news conference.

    He said the company would instead discuss the number of future orders in a conference call with analysts and file it with regulators.

    Mr. Campaign also said, "future orders are still a valuable data for the company's operation mode", but as companies increasingly sell goods directly to consumers, "the relationship between future reports and revenue reports for one quarter should be separated".

    This move is not only a sign of changes in Nike's revenue reporting, but also an extensive reform of the company's retail practices.

    In order to replicate the success of fast fashion brands like H&M and Zara, many manufacturers want to bring their products to market faster and sell them directly to consumers rather than distributors.

    At the investor conference last autumn, Nike announced that its annual sales to consumers by 2020 would more than double to $16 billion.

    Prior to its earnings report on Tuesday, Nike was fighting against the rapidly changing sporting goods industry. Some of its main retail partners, including The Sports Authority, had gone bankrupt or faced liquidation.

    In the US domestic market, Nike also faces growing pressure from rivals Andemar and Adidas.

    Analysts believe that in the cruel field of basketball and sports and leisure, the two companies have taken Nike as part of the market share of the boss.

    Nike CEO Mark Parker admits that with the trend of fashion in fashion and footwear, and the sudden rise of competitors, Nike is facing increasingly fierce competition.

    Considering that there are two super competitions in the Olympic Games and the European Cup this summer, "the trend of sports continues to affect the daily wear styles of all the people in the world, which has led to the emergence of new brands in the field of sports."

    Mr. Parke said so.

    Mr. Campaign said Nike North America's sales performance should exceed the growth of North America's future orders, breaking the balance between the two data, because Nike expects sales to be directly sold to consumers will be higher and higher.

    In the first quarter, Nike's total revenue was $9 billion 60 million, and its North American sales increased by 4 billion 30 million, an increase of 6.1%.

    Overall, Nike reported a profit of $1 billion 250 million and a profit of 73 cents per share, an increase of 1 billion 180 million cents a share and a profit of 67 cents per share.

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