Nike’s fourth-quarter revenues up 5 per cent
Greater China and emerging markets helped boost Nike sportswear group’s revenues by 5.3 per cent to US$8.68 billion (7 per cent on a constant-currency basis) for its latest fourth quarter.
Revenues for the Nike brand were $8.1 billion, up 7 per cent in constant currency.
Converse brand revenues were $554 million, up 10 per cent and driven by growth in direct-to-consumer businesses.
However, the company’s gross margin declined by 180 points as higher average selling prices were more than offset by unfavourable changes in foreign currency exchange rates and higher product costs.
Globally, footwear sales for the Nike brand increased by 10 per cent (excluding currency effects) to $5.08 billion. Apparel sales were up 4 per cent to $2.24 billion, and equipment sales fell by 14 per cent to $391 million.
Footwear sales were up by 8 per cent, or 10 per cent excluding currency effects. The strongest footwear sales came from emerging markets region, where sales growth was 24 per cent, followed by Greater China at 18 per cent.
Global apparel sales edged up 3 per cent, or 4 per cent excluding currency effects. Following western Europe, the strongest growth was in Greater China and Japan, where sales were up 14 and 11 per cent respectively.
In the quarter, revenues increased by 16 per cent in Greater China to $1.08 billion, by 5 per cent in Japan to $295 million, and by 18 per cent in emerging markets to $1.05 million).
For the full fiscal year, total revenues rose by 6 per cent per cent to $34.4 billion, and revenues were up 8 per cent in constant currency.
Revenues for the Nike brand were $32.2 billion, up 8 per cent year over year. Brand sales to wholesale customers increased by 5 per cent while direct-to-consumer revenues rose 18 per cent to $9.1 billion, driven by a 30 per cent increase in digital commerce sales and the opening of more stores. The brand had 985 direct-to-consumer stores at the end of the year, compared with 919 stores 12 months earlier.
Nike brand sales were driven by growth in every geography as well as by key categories, including sportswear, running and the Jordan brand. Converse brand revenues were $2 billion, up 6 per cent.