Nike's success in Asia sees it end 2015 on a high
Nike’s growing popularity in the Asian market saw it increase its year-on-year net profit for the three months ending November by 20 per cent.
The sports giant reported that by the end of November its future worldwide orders for footwear and clothing were up 20 per cent, excluding currency changes. The results come as Nike announces plans to invest heavily in order to grow revenue through its ecommerce channels to $7bn by 2020.
The current year-on-year net profit increase owes to a strong demand in Asia where China made up 34 per cent of the growth and Japan 32 per cent. North American sales were also largely responsible, contributing 14 per cent to the jump in footwear and clothing sales.
Chief executive, Mark Parker, said Nike’s “powerful global portfolio of businesses, combined with strong financial discipline, continue to drive significant shareholder value."
He added that the company sees “tremendous opportunity ahead as we enter an Olympic and European Championships year with a full pipeline of inspiring innovation for athletes everywhere."
Nike also surpassed its own expectations for future orders for deliveries from December to April 2016, boosting revenue by 4 per cent to $7.7bn.
Footwear sales continue to be a key driver in Nike’s success, especially its Air Jordan range, and the company has invested heavily in the area. Earlier this month it signed a lifetime deal with basketball star LeBron James.