Wednesday, 23 December 2015

Nike shares jump on strong demand in China as footwear brands prove popular

Nike shares, already the year’s top performer on US stock index the Dow Jones Industrial Average, jumped more than 2% in afterhours trading, as a 34% jump in future orders – a gauge of demand – in Greater China impressed.

In its home market of North America future orders were up 14%, helped by demand for its higher-margin footwear brands including basketball shoes named after LeBron James, the basketball star with whom Nike just signed a lifetime sponsorship deal rumoured to be worth more than $500 million (£336.8 million).

The company has seven of the world’s 10 highest-earning sports stars on its books, including Roger Federer and Tiger Woods.

Total future orders were 20% higher, well above analysts’ expectations of 13.6%Nike also reported second-quarter revenue up 4% at $7.7 billion and net income of $785 million, a 20% increase.

Chief executive Mark Parker was upbeat for the coming year.

"We see tremendous opportunity ahead as we enter an Olympic and European Championships year with a full pipeline of inspiring innovation for athletes everywhere," he said.
http://www.standard.co.uk/business/nike-shares-jump-on-strong-demand-in-china-as-footwear-brands-prove-popular-a3143441.html

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