Nike Q3 Sales Are No Match For Adidas NMD Series Plan To Dig Stephen Currie'S Designer.

Nike harvested a mixed financial report.

Beijing time on March 23rd, Nike released its third quarter financial report in fiscal year 2016.

As of February 29th, Nike's net profit increased 20.1% to 950 million dollars, and sales revenue increased 7.6% to 8 billion 30 million dollars.

Excluding the exchange rate effect, Greater China's third quarter sales grew by 27% to $982 million.

The increase in the third quarter was mainly due to running shoes, basketball shoes and

Strong demand.

Of the US $8 billion 30 million quarter sales, $7 billion 600 million came from Nike's main brand, excluding exchange rate effect, which increased by 15% over the same period last year.

In addition, Nike's CONVERSE brand sales revenue of 489 million US dollars, down by about 5% compared with the same period last year.

After the last quarter, CONVERSE remained weak in the consumer market.

However, thanks to the strength of the US dollar, the sales revenue of US $8 billion 30 million is not as high as the US $8 billion 200 million expected by Wall Street.

According to the Wall Street journal, since 2005,

The actual profit growth is only three times less than market expectations.

As a result, after the quarterly announcement, Nike's share price fell 3% in after hours trading.

Nike's share price also declined, which is also related to sales expectations in the North American market.

Earnings data show that between March 2016 and July, Nike's orders in the North American market increased by about 10%, down from 12% expected by Wall Street.

Investors are worried that Nike's sales performance in the North American market will decline.

In addition, future orders for Western European markets are also behind expectations.

Globally, excluding the impact of exchange rate, Nike's orders grew by about 17%, exceeding the expected 16.1%.

Although the expectations in the North American market are somewhat inferior, the Greater China region always brings surprises to the US brand.

Following the first quarter's surge of 30% and a further increase of 24% in the second quarter, the sports giant remained strong in the Chinese market in the third quarter, and sales in the Greater China region increased 27% to 982 million US dollars.

But in the public information of earnings report, Nike has not mentioned the main growth point of Greater China.

At the same time, orders in North America and Western Europe were less than expected, and the future orders of Greater China from March to July jumped 36%, much higher than analysts' expectations of 20.7%.

This figure shows that the Chinese market has maintained a high demand for Nike products and has become the fastest growing brand in the United States.

It can be seen that the slowdown in China's economy has not affected Nike, which is expected to double its revenues in the 2020 fiscal year to 6 billion 500 million US dollars.

It is interesting to note that, at the same time, the US business media Quartz reported that Nike had launched the Dave Dombrow, a senior designer of the American brand Under Armour Curie boots.

Although Nike occupies more than 90% of the basketball shoe consumption market in the United States, Under Armour, the second largest sports brand in the United States, has always been the "thorn in the eye" of Nike.

The reason is very simple. The excellent performance of warrior star Stephen Currie made the boots of Curie extremely hot. The Under Armour's results show that, as of the fourth quarter of December 31, 2015,

The sales of sports shoes increased by 95% over the same period last year.

Foreign media ridicule said that every single throw of the ball in the pool is encouraging young people to choose James's boots instead of Nike's shoes.

As a result, this newly publicized brand name is considered to be the strong enemy of Nike in the US market.

Nike, the senior designer of the war boots, seems to be showing an "intolerable" attitude.

However, it is still hard to predict the change in the competition situation.

Jefferies, a US investment bank analyst, described it as a "tactical victory".

The implication is that Nike may not be able to make substantial changes to its competitors, but it will bring some psychological comfort to the sports giant.

After the third financial season, the European Cup and Rio Olympics will become an important battleground for Nike's revenue generation.

Just a week ago, Nike held a four - year (Olympic cycle) Innovation Conference in New York.

During the period, the US brand released the 2016 Rio Olympic Games and the European cup full line equipment.

Since the 2000 Sydney Olympic Games, Nike will be the first official Olympic cooperation list to become a sporting goods supplier in Rio.

This means that Nike, who previously provided equipment for the national team, will have the opportunity to hype in Rio this summer.