Nike Uses Price Rises To Offset Tariffs, And Profits Soar In The Second Quarter.

Nike Inc, the US sporting goods giant, used price rises to offset trade tariffs in the United States, and profits rose 32% in the second quarter.

In the 3 months ended November 30, 2019, the company's net profit (net income) grew by 31.6% to $1 billion 100 million, and the group's overall revenue grew 10.2% to $10 billion 300 million.

By brand, Nike brand revenue grew 12%, to $9 billion 800 million, and was promoted by the wholesale and Nike Direct businesses. The main business categories included Sportswear, Jordan Brand and Running business, and the continued growth of footwear and garment businesses.

Converse's revenue reached US $4 million 800 thousand and grew by 15% on the basis of monetary neutrality. It was mainly driven by the two digit business growth in Asia and Europe and the promotion of global digital development.

Nike Inc., headquartered in the US Oregon Beaverton, also pointed out that the gross profit margin grew by 20 basis points to 44%, mainly due to the growth of the average selling price of the products and the growth of the profit margins of Nike Direct and Converse. Some of the profits were offset by the rising cost of products, which was mainly caused by the US tariff rise.

Nike president, chairman and CEO Mark Parker said: "in the second quarter, Nike once again proved that" innovation "is our biggest competitive advantage, transforming the views of athletes into breakthrough products and digital services, and we will provide more consumers with more choices at a faster pace. "

In January 2020, eBay CEO John Donahoe will take over the position of chief executive officer of Parker, and Parker will continue to be the CEO of the group.

Andy Campion, chief financial officer, added: "as we continue to promote innovation and expand the digital advantages of Nike, we aim to enhance product competitiveness and create long-term shareholder value. "

In early December 2019, Nike completed the sale of Hurley surfing brand to investment company Bluestar Alliance.