NewNike jump as greater China earnings soar 51pc
Sportswear giant bucks Chinese economic slowdown as sales of footwear in region surge 36 per cent and overall sales rise 30 per cent
Led by surging footwear sales, global sportswear giant Nike posted strong first-quarter income in greater China as the company bucked an economic slowdown in mainland China
Locking in about 12 per cent of market share in China, the same as rival Adidas, Nike saw its greater China earnings before interest and tax soar 51 per cent to US$330 million in the three months to August. Sales of footwear in the region surged 36 per cent and overall sales rose 30 per cent.
It said orders for the next five months - a major indicator of sportswear company performance - also rose, by 27 per cent in greater China, excluding the impact of foreign exchange fluctuations.
Trevor Edwards, the president of the Nike brand, said after the results were released that the growth in the greater China region was "incredible", with growth expected "for many years to come".
Robust online sales, effective store restructuring and eye-catching sports events made the past three months a busy quarter for China and a profitable season for Nike.
One of the events that attracted widespread attention was the 2015 World Athletics Championships in Beijing last month. As a sponsor of China's national track and field team, Nike's brand stood out during the event because of 26-year-old Chinese sprinter Su Bingtian, who not only became the first Chinese person to run the men's 100 metres in under 10 seconds in a semi-final but also helped his team mates win a silver medal in the 4x100 metres men's relay.