Nike Reports Higher Profits Amidst Slow Growth In China

Company Performance

Nike Reports Higher Profits Amidst Slow Growth In China

Nike reported solid gains in both quarterly profit and revenues, but growth has slowed down in China. The sports apparel and sneaker giant reported a 15% jump in earnings for fiscal first quarter 2019 to US$ 1.1 billion. Revenues climbed 10% to US$ 9.9 billion.

Nike scored revenue gains in all four of its regions, with the strongest increase in China, where year-over-year revenues gained 24% to US$ 1.4 billion. However, that jump was a bit below the 35% leap in year-over-year revenues reported in the prior quarter.

Nike's results were also pinched somewhat by higher costs, as it ramps up spending on sports marketing and its direct selling business. Direct selling to consumers instead of through conventional retailers, along with innovation, is "driving strong momentum and balanced growth across our entire business," said Chief Executive Mark Parker.