Nike returned to "growth in its core North American market, ending a streak of quarterly declines that have weighed on results at the world’s largest sportswear maker," according to Sara Germano of the WALL STREET JOURNAL. Sales in the U.S. rose 3% to $3.9B for the three months ended May 31, "an uptick after three straight quarters of declines." The gains came "despite overall weakness in the basketball sneaker market and stiffer competition" from rivals such as adidas. Nike has "ramped up efforts to sell sneakers through its own website and started selling goods on Amazon.com." Nike's sales directly to consumers increased 15% to $10.4B for the year ended in May, compared with growth of 4% in its traditional wholesale business over the same period. Execs "touted Nike's sales partnerships with e-commerce giants and social media platforms," as well as its "efforts in selling goods directly to consumers through its own site and apps." Nike execs made "no mention of its broad corporate culture scandal which surfaced this spring and led to the exits of at least 11 executives" (WALL STREET JOURNAL, 6/29).
A CLOSER LOOK: In Portland, Jeff Manning reported Nike posting 12.8% revenue growth to $9.79B in Q4 was "well beyond the consensus expectations of Wall Street analysts." Nike earned $1.14B in the "three-month period," compared with $1.01B during the "same period a year ago." However, there are two "dark spots on Nike's horizon." Jordan Brand is "suddenly struggling," as Q4 sales totaled $2.85B, down 8% from a year ago. Converse also is "seeing a decline in sales," reporting revenue of $1.9B, down 11% from last year (Portland OREGONIAN, 6/29). In Portland, Andy Giegerich reported Nike said that its board authorized a four-year, $15B program to "repurchase shares of Class B Common Stock." That program begins after a current $12B share repurchase program "ends within its next fiscal year" (PORTLAND BUSINESS JOURNAL, 6/28).
