Nike Local Market Sales Further Decline

According to the world clothing shoes and hats net, Nike

In the two quarter of last 2018 fiscal year, the group failed to cash in with analysts' improvement.

Sales expectations declined further. The group's share price fell 5.7% to 61.10 dollars before Friday's 22 th session.

The world's largest sporting goods group expects that the US market will only contribute to 1/4 growth in the next five years.

In the two quarter ended November 30th, Nike Nike

North American income decreased by 5% compared to the same period last year, and has fallen two quarters, of which the largest category of footwear has fallen by 7%. Bloomberg Intelligence analyst Chen Grazutis pointed out that the core market performance is worse than most people expect.

No Agency analyst Tang Xiaotang said Nike's performance in North America in the two quarter was weaker than that of the agency, and the agency expected to remain flat.

"The stock price reflects the performance of the company in North America, but investors are still optimistic about this sport giant from the intraday (lowest drop of nearly 2%) performance."

The agency holds Nike Inc. Nike stock.

In a forward looking report on Thursday, No Agency gave Nike Inc. Nike group a target price of US $72, but indicated that it would be able to callback to 20 antenna position in the near future depending on the performance of North America.

During the period, Nike Nike Group continued to implement the strategy of reducing promotional discounts under the continued popularity of Adidas Adidas and Puma SE Puma, which had a certain impact on US sales.

At the same time, the group concentrates on developing two major retail outlets and e-commerce websites directly facing consumer channels and cooperation with Amazon.com Inc. Amazon.

Nike Mark Group Chairman, chief executive officer and chief executive officer Mark Parker pointed out that the Nike Nike brand's direct sales plan for the Amazon Amazon platform has made good progress and will expand cooperation in the future.

The brand will also enter Stitch Fix Inc, an apparel online retailer with order boxes.

In the two quarter, e-commerce business recorded an increase of 29%, currently accounting for 15% of the total revenue. The group has set a target to increase to 30% in five years.

Nike Inc. Nike group announced this month that it will reset the Nike Nike brand Niketown flagship store in Fifth Avenue, New York. The original store will be closed in early 2018, but the six tier 70 thousand square foot new shop will not open until 2019.

The huge loss of one year's closure and the significant investment in the next 15 years (the rental value of US $700 million) has fully demonstrated the group's determination to lead growth by directly facing the consumer business.

In terms of wholesale business, the group is reducing its distribution to department stores, focusing on 40 sports retailers, including Finish Line Inc. and Foot Locker Inc., to strengthen its business.

Finish Line Inc. executives revealed on Thursday's three quarter earnings conference call that Nike Nike's brand VaporMax and Huarache and Huarache ULTRA sales were all excellent.

Nike Nike brand President Trevor Edwards told analysts yesterday that it would restrict the launch of some Jordan brand basketball shoes in the market in order to protect its scarcity.

According to data from market research firm NPD Group, Adidas Adidas has surpassed Jordan in September this year, becoming the most popular sneaker brand in the United States after Nike Nike.

At that time, Mark Parker emphasized that the demand for Jordan brand outside the United States was still hot, especially in the Greater China region.

Mark Parker pointed out yesterday that the potential for domestic business in the two quarter has shown potential momentum. The chief financial officer, Andy Campion, also said that through the rectification of wholesale distributors, the wholesale channel began to stabilize. It is expected that the end of this fiscal year will take a turn, and the North American market is expected to resume growth in the 2019 fiscal year.

The international market shows a completely opposite trend.

The EMEA, Greater China, Asia Pacific and Latin America, which accounted for 55% of the group's revenue, speeded up. After the exchange rate was removed, the three markets recorded a growth of 14%, 15% and 8%, which jointly offset the decline in the North American market. The Nike brand earned 8 billion 136 million dollars in the three quarter, up 5.3% from the same period last year, and the fixed exchange rate rose by 4%, while footwear and clothing rose by 3% and 3% in Nike.

Converse CONVERSE's revenue decreased by 4% to $408 million over the same period.

Nike Inc., Nike group, has a total revenue of 8 billion 554 million US dollars, slightly better than the market forecast of US $8 billion 390 million, an annual increase of 4.6% and a fixed exchange rate of 3%.

Gross margins fell 120 basis points to 43%, while the market was expected to be 42.5%.

The Group expects the gross profit margin to fall by 125-175 basis points in the three quarter because of the strong dollar and the rising cost of new products, while revenue growth will remain in the median.

The outlook for year-on-year income rose by 4%-6% and the gross margin was 50-100 basis points unchanged.

Affected by gross profit margins and sales and administrative expenses increased, net profit in the two quarter dropped 8.9% to 767 million US dollars compared with the same period last year. EPS dropped from $0.50 to US $0.46, but still higher than the US $0.40 of market expectations by 15%.

Group executives told analysts that the tax reform bill just passed will benefit the group in the long run.

Nike Inc. fell 3.12% to 62.81 dollars early on Friday.

Since the new low of $50.35 in the middle of October, as of Thursday's closing, reshaping high-end positioning Nike, reducing discount, New York stores closed shop reloading for a year, the stock has accumulated a rebound of 28.6%.

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