Nike’s poor India run continues, loss widens
Nike's sales have fallen to Rs 764 crore in FY16 compared to Rs 803 crore in FY15, data from Registrar of Companies (RoC) showed. Its loss widened to Rs 170 crore in 2015-16 compared to a loss of Rs 101 crore in 2-014-15.
Nike's competitors Adidas and Puma have surged ahead with sales of Rs 899 crore and Rs 878 crore. In FY15, Adidas notched up sales of Rs 805 crore, while Puma, whose year ended in December 2014, showed sales of Rs 769 crore.India is still not a fitness-oriented market, although it has great potential," said Dave Thomas, Adidas Group India. "Our good performance in India comes on the back of strong launches. We have closed non-performing stores (both Adidas and Reebok), and have focused on our athleisure brand Adidas Originals, which has given us very good results." Sales of Reebok, which is an Adidas-owned brand, have grown too, from Rs 332 crore in FY15 to Rs 355 crore in FY16. However, among all the four players, Reebok bears the burden of highest accumulated losses — Rs 2,198 crore in FY15.
Nike is on a consolidation spree in India. It has shut around 35% of its stores and has pulled out of expensive bat sponsorship deals of top Indian cricketers.
Stay updated on the go with Times of India News App. Click here to download it for your device.