American sports giant Nike Group announced key financial data for the first quarter of fiscal year 2021 as of August 31 on Tuesday. Compared with the same period last year, although sales still fell slightly, sales in digital channels Driven by the Chinese market, Nike has returned to profitability.
In the first quarter ended August 31, Nike’s key financial data are as follows:
Sales were US$10.6 billion, down 1% year-on-year, and the same as the same period last year at constant exchange rates; among them, the sales of the Nike brand were US$10 billion, the same as the same period last year at constant exchange rates, and Converse (Converse) )’s sales were US$563 million, a year-on-year increase of 2% at constant exchange rates.
Gross profit margin was 44.8%, a year-on-year decrease of 90 basis points, mainly due to the impact of the new crown epidemic
Net profit 15 billion, an increase of 11% year-on-year, and a diluted share of US$0.95, an increase of 10 cents compared with the same period last year
Nike Group stated that the sales of the Nike brand last quarter were mainly affected by two Promotion in terms of: digital channels and company direct business NIKE Direct
In the last quarter, Nike brand digital channel sales increased by 82% year-on-year and 83% at constant exchange rates. , North America, Greater China, Asia Pacific and Latin America all achieved double-digit growth, while EMEA (Europe, the Middle East and Africa) achieved triple-digit growth. Nike said it will continue to invest in websites, mobile applications and other aspects to strengthen the competitiveness of digital channels.
On the other hand, NIKE Direct’s sales in the first quarter reached US$3.7 billion, a year-on-year increase of 12%, an increase of 13% at constant exchange rates, and growth in all regions.
At present, almost all Nike stores in markets outside the Asia-Pacific have reopened, and the opening rate of stores in the Asia-Pacific region has reached 90%. However, affected by the epidemic, the traffic of physical stores is still declining, but the conversion rate Improved.
As of the end of last quarter, Nike Group’s total inventory was US$6.7 billion, a year-on-year increase of 15%, but a 9% decrease compared to the end of the previous quarter. The group said it will continue to strategically manage the large amounts of additional inventory caused by store closures and declining wholesale sales.
John Donahoe, president and CEO of Nike Group, said: “Our performance this quarter confirms our competitive advantage in the market. In such a turbulent environment, no other company can keep launching innovations like us. The speed of products and maintaining deep connections with consumers. These advantages and our accelerated development in digital channels will help Nike unlock long-term market potential.”
Nike Group also gave a plan for 2021 Full-year fiscal year expectations: Sales are expected to grow by high single digits to low double digits.
After the news was announced, Nike’s stock price rose $13.37 in after-hours trading on Tuesday, reaching $132.50 per share.
In the first quarter of fiscal year 2021, which ended on August 31, Nike’s specific performance in each market is as follows:
Sales in North America were 4.225 billion US dollars, down 2% year-on-year, down 1% at constant exchange rates; of which sales of shoes increased 11% year-on-year, sales of ready-made clothing fell 21% year-on-year, and sales of sports equipment fell 26% year-on-year
Sales in Europe, the Middle East and Africa were US$2.91 billion, down 5% year-on-year, or 5% at constant exchange rates; of which footwear sales increased 3% year-on-year, and ready-to-wear sales increased year-on-year. 12%, and sales of sports equipment fell 6%
Sales in Greater China were US$1.78 billion, a year-on-year increase of 6%, and an increase of 8% at constant exchange rates; of which footwear Sales increased by 7% year-on-year, sales of ready-made clothing increased by 3% year-on-year, and sports equipment sales increased by 2% year-on-year
Sales in Asia Pacific and Latin America were US$1.099 billion, down 18% year-on-year. It fell 12% at constant exchange rates; among which, sales of shoes fell 18% year-on-year, sales of ready-made clothing fell 15% year-on-year, and sports equipment sales fell 32% year-on-year.</p
