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The global fashion business journal

23 Sep 201904:42

Nike doubles its profit and increases its sales by 7% in 2019

The US sports fashion distribution group recorded a turnover of 34,300 million euros thanks to the boost of the Jordan brand and direct sales.

28 Jun 2019 — 14:00
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Nike doubles its profit and increases its sales by 7% in 2019

 

Nike closes 2019 at a good pace. The US sports fashion distribution group doubled its net profit in the last year (closed in May), to 4,029 million dollars (3,544 million euros). In terms of group, it earned 1,933 million dollars (1,700.48 million euros) the previous year.

 

The company has indicated that the increase in profit has been due to the growth of revenues, the improvement of gross margin, as well as a lower tax charge. Sales, on the other hand, increased by 7% to 39,100 million dollars (34,300 million euros).

 

The company has attributed the improvement of the results to the promotion of the Jordan brand, as well as the improvement of direct sales to the consumer. Footwear is the main division of the group and contributed to 70% of sales, reaching 24,222 million dollars (21,308.4 million euros). Specifically, sales of sports shoes increased by 8.7% over the previous year.

 

 

 

 

After this line of business, it was located the clothing division, which for the first time reached 11,000 million dollars. Specifically, it stood at 11,550 million dollars (10,160.7 million euros), 7.2% more than the previous year.

 

By geographic regions, Nike grew on all continents. North America is the first market for the company, since there it recorded sales of 15,902 million dollars (13,989 million euros), equivalent to 46% of the total. The regions of Europe, Africa and the Middle East (Emea) also experienced an increase of 6%, to 9,812 million dollars (8,631 million euros).

 

In the region where the turnover grew the most was in China, with an increase of 21%, although it is still far from the volume of sales in Europe and North America. The Asian giant generated sales of 6,208 million dollars (5,461 million euros), a market that the company plans to continue growing. Finally, in Latin America and Asia-Pacific, sales stood at 5,254 million dollars (4,622 million euros), 2% more.

 

 

 

 

Through distribution channels, a third of Nike's turnover comes from its own store network. This sales channel grew 13% in 2019, to 11,753 million dollars (10,339 million euros), although the majority of the business still comes from the multi-brand distributors that market their products, which also saw their sales increase by 6%, up to 25,423 million dollars (22,365 million euros).

 

The company has supported part of its growth in the sports brand Jordan whose sales increased by 10% to 3.138 million dollars (2,760.5 million euros).

 

Finally, running has established itself as the main sports discipline of the North American group, although in 2019 sales stagnated at 4,488 million dollars (3,948 million euros).

 

 

 

 

The training division of Nike, meanwhile, did not record any growth in the last fiscal year, and placed sales to 3,137 million dollars (2,759.6 million euros), after two years growing at inter-annual rates between 4% and 3%.

 

The sport that grew the most was basketball, supported by the contract signed with the NBA and the North American teams. In 2019 this division registered an advance of 7%, up to 1,597 million dollars (1,405 million euros), while soccer fell to 1,894 million dollars (1,666 million euros), 12% less than in 2018.

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