American sportswear giant Nike has emerged as the winner of the World Cup after it reported a sharp rise in profits, leaving rivals Adidas and Reebok knocked out.
Profits soared 23.5 per cent to $962 million for the quarter to the end of August – its first quarter of its 2015 financial year - and sales in the period jumped 14.5 per cent to nearly $8 billion, beating analyst expectations.
More football players at the World Cup wore Nike boots than all other brands combined. Rivals Reebok and Adidas have both reported weak trading recently and in contrast Nike has been growing or maintaining market share globally and improved its gross margin to 46.6 per cent in the period.
Nike said orders for its footwear and clothing, that will hit the shops between now and the new year, rose 14 per cent in the first quarter and demand from fitness and football fans in western Europe and north America helped boost sales. It said its focus on higher margin products such as its Flyknit football boots helped its profit grow. Nike president and chief executive Mark Parker said the first quarter was “a strong start” and said its “connection to consumers and ability to innovate, combined with our powerful global portfolio, is a complete offense.”Reuse content