Nike'S Net Profit Fell Nearly 20% In The Second Quarter.

< p > recently, the United States < a href= "http://sjfzxm.com/news/index_x.asp" > Nike < /a > sporting goods company announced the second quarter of fiscal year 2013 (September to November) earnings.

Data showed that after the first quarter net profit fell 12%, Nike's net income in the second quarter of fiscal 2013 slipped again from 18% to 384 million dollars.

< /p >

< p > to the performance, insiders said "not surprisingly".

In addition to the economic slowdown's impact on its performance, Nike also had to face the pressure of Adidas's strong chase, leisure and fast fashion brands and the continuous promotion of local brands.

< /p >

< p > < strong > local brand collective siege < /strong > /p >

< p > Nike reported its net income in the second quarter, its net income fell to 18% from last year's US $469 million to US $384 million.

With the increase of labor costs and exchange rate, gross margin dropped by 30 basis points to 42.5%.

< /p >

< p > Nike said that the decline in performance was affected by the negative effects of the European economic recession and China's economic slowdown. It was also related to the two brands UMBRO and ColeHann had previously sold.

The termination of the above two brand related businesses resulted in a reduction of approximately $137 million in revenue.

< /p >

Compared with domestic brands, Nike products are priced at a higher price than P, which will inevitably become the ultimate goal of many local brands.

< /p >

< p > in a Nike discount store in Changning District, Shanghai, "two, 15% off, three, 20 percent off" signboards are particularly eye-catching.

A salesperson said that the discount was given again on the original discount of the product, and the new product also took part in the activity.

"A target=" _blank "href=" //www.sjfzxm.com/ "> shoes < /a > the discount is as low as sixty percent off.

The salesperson told reporters.

< /p >

< p > there is a view that under the collective siege of local brands, Nike has to increase sales promotion efforts to resist external shocks in order to protect its sales position.

< /p >

< p > < strong > future or by Adi inverse < /strong > < /p >.

< p > "this (performance) is unpredictable."

It is crucial to know that Zhang Qing, the founder of sports consulting firm, told reporters that the North American market is affected by the macroeconomic environment, and that residents' spending on unnecessary consumption is falling.

In the Chinese market, sports, leisure class < a target= "_blank" href= "//www.sjfzxm.com/" > clothing "/a" still shows a downturn.

< /p >

< p > for the continued deterioration of Nike's performance in the two quarter, Zhang Qing thought it was affected by the delayed effect.

"Nike's performance is mainly achieved through channel providers. When the market environment is not very good, everyone will adopt a partial insurance strategy, and will be cautious in ordering."

< /p >

< p > < strong > in addition, in China, Nike is also facing pressure from outside the industry.

< /strong > < /p >.

< p > Zhang Qing believes that since sports have not yet become a way of life for Chinese consumers, consumers want to have a certain reputation and functionality while pursuing fashion.

At this point, Nike is inevitably competing with casual and fast fashion brands.

< /p >

At the same time, Adidas's latest performance has obviously put pressure on Nike, and even has the view that Adidas will surpass Nike in the future to become the leader of P.

The net profit of a href= "http://sjfzxm.com/news/index_f.asp" > Adidas < /a > third quarter (July to September) increased by 14% to 344 million euros compared with the same period last year.

Adidas expects net profit of 770 million euros to 785 million euros this year.

< /p >

< p > "Nike's location is still hard to shake, but the three indicators are the stability of the channel, the marketing capabilities of the brand and the amount of resources that Adidas can't match."

Zhang Qing told reporters, but if Adidas has made breakthroughs in these three aspects, coupled with the development of the two sub brands of clover and NEO, it is possible to surpass Nike.

< /p >