Nike'S 315 Exposure Has Affected North American Market Performance?

Although China's performance continued to be strong in the first quarter, it did not seem to be "315".

Exposure, but the biggest decline in the North American market is still the world's largest sporting goods retailer, Nike Inc. NYSE:NKE.

The group has no face.

Affected by the 3% drop in North American market sales and the release of Tuesday's after hours performance report, Nike Inc. (NYSE:NKE), Nike group's share price fell 4.5% and Wednesday's decline narrowed, with a 3.40% decline in the US Eastern time 6:08AM at $51.90.

According to the world clothing and shoe net, as of the first quarter of August 31st, the net profit of Nike Inc. & amp; Nike Group recorded a profit of 950 million US dollars, a sharp fall of 24% compared with the 1 billion 249 million US dollar in the first quarter of fiscal 2017, and the earnings per share of US $0.57, compared with 0.73 US dollars in the same period last year, a 22% decrease compared to the same period last year.

The EPS performance in the first quarter was better than the $0.48 expected by Zacks, mainly due to the company's cost reduction plan and China.

Continued strong.

Earlier, Nike Inc. and Nike group announced plans for layoffs at headquarters in India and Oregon, while adjusting departments and strategies, more direct, digital and core markets.

At the earnings conference, Nike Inc. Nike group said that the uncertainty of the channel business may continue to drag down the performance of the North American market.

In August of this year, sporting goods agents Foot Locker, Inc. (NYSE:FL), Finish Line Inc. NASDAQ:FINL (NASDAQ:FINL), Dick 's Sporting Sporting (5), (Inc.), Hong Kong, China, Hong Kong and Hong Kong, and the collapse of the stock market were worried by sports brands.

Even entering Amazon.com Inc. NASDAQ:AMZN, Amason, is likely to further weaken the wholesale end business.

In the first quarter, Nike Inc., Nike group's revenue was $9 billion 70 million, which was basically the same as the US $9 billion 61 million in the same period last year. It was the worst in nearly 7 years, and North American market income dropped from 4 billion 31 million US dollars to US $3 billion 924 million.

In the latest earnings report, the performance disclosure of Nike Inc. and Nike group has been adjusted from the 6 big market to the 4 largest market according to the previous market adjustment.

The Greater China market increased by 9% in the first quarter, and the fixed exchange rate increased by 12%, from 1 billion 20 million US dollars to US $1 billion 108 million, the best performing market.

Nike Nike was exposed this year at CCTV's "3. 15" party. The brand Hyperdunk 2008 FTB complex basketball shoes are known as Zoom Air air cushions, but consumers are suspicious of them in their use process. And after cutting heels, there is no air cushion for Nike Nike propaganda.

On the night of March 15th, Nike Nike issued a statement responding to the above questions, which initially claimed to be the company's initiative to identify problems, and said that it was only necessary to execute a refund for the problem of basketball shoes and refuse compensation.

However, with the ferment of events and the investigation and enforcement of law enforcement agencies, Nike Inc. Nike Group China subsidiary Nike Commerce (China) Limited finally issued a statement, apologizing to consumers while giving compensation to consumers who purchase Hyperdunk 2008 FTB rebar basketball shoes, which is 4500 yuan, three times the 1499 yuan of basketball shoes.

However, in the first quarter of the Greater China's performance, the exposure of the "3. 15" evening party obviously had little effect on the performance of the brand in China.

According to brand, Nike Nike earned $8 billion 585 million in the first quarter, an increase of 1% over the same period of 8 billion 459 million dollars a year, a 2% increase in fixed exchange rate, and a 16% drop in sales of CONVERSE Converse, which fell from 574 million US dollars to 483 million US dollars. The brand failed to continue to capture young people and was grabbed by market share by Vans and other brands.

By the end of the first quarter of August, the gross profit margin of Nike Inc. Nike group fell by 180 basis points to 43.7%, mainly due to the unfavorable exchange rate and the rising proportion of low price products.

At the end of August, a number of retailers responded to Nike Inc.'s high-end series Air Jardon series, but the report of the Research Institute NPD Group Inc. said that Adidas Adidas had surpassed Air Jardon to become the second market share in the US market.

Nike Inc., Nike group, said at the earnings conference that the company would no longer disclose orders, because direct business has increasingly become the main source of revenue for the company, and futures can no longer describe its business accurately.

On the other hand, with the downturn of wholesalers, the volume of orders continues to decline.

In the 2017 fiscal year, the group's direct business revenue accounted for 28%. The company said that the direct revenue in the first quarter was driven by an increase of 19% in the revenue of the electricity supplier, with an increase of 11%.

Nike Inc. Nike Group expects two quarter and full year revenue to have low single digit growth, while gross margin is similar to the first quarter.

On Tuesday, the stock price of Nike Inc., Nike group rose 0.88% to 53.70 U.S. dollars. The stock has risen 5.65% this year, but it lost 11.51% of the S & P 500 and 2.62% in the past year. Meanwhile, the S & P 500 index rose 15.33%.

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