The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
BEAVERTON, United States — Investors in Nike Inc., beset by a misconduct scandal that burst into public view last week, are taking comfort from a turnaround at its ailing North American business.
Though sales in the region declined for a third straight quarter, chief executive Mark Parker said the picture brightened by the end of the latest period. New products and an improved customer experience are helping win back customers, he said in a statement.
“We now see a significant reversal of trend in North America,” Parker said.
The results help send the shares up as much as 5.3 percent to $67.85 in late trading. The stock had climbed 3 percent this year through Thursday’s close.
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The world’s biggest sports brand has spent a year trying to regain its foothold in its biggest market after an overly ambitious revenue target — $50 billion by 2020 — led to a buildup of US inventory. The slump was worsened by store closures, competition from Adidas AG, and a fashion shift away from Nike’s strengths — like basketball shoes.
Now the company says it’s back on the upswing. Earnings also topped analysts’ estimates last quarter. Excluding some items, profit amounted to 68 cents a share, compared with an average prediction of 53 cents.
Chinese Growth
The company’s business overseas remained strong, with China growing 19 percent, excluding currency effects. Total revenue came in at almost $9 billion, outpacing the estimate of $8.85 billion.
Nike disclosed last week that it was reviewing allegations of improper conduct at the apparel giant. The news accompanied the abrupt resignation of two high-profile executives.
Trevor Edwards, president of the Nike brand and once seen a likely successor to the 62-year-old Parker, stepped down from the role and will retire in August. And one of his direct reports, Jayme Martin, left the company last week.
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From analysis of the global fashion and beauty industries to career and personal advice, BoF’s founder and CEO, Imran Amed, will be answering your questions on Sunday, February 18, 2024 during London Fashion Week.
The State of Fashion 2024 breaks down the 10 themes that will define the industry in the year ahead.
Imran Amed reviews the most important fashion stories of the year and shares his predictions on what this means for the industry in 2024.
After three days of inspiring talks, guests closed out BoF’s gathering for big thinkers with a black tie gala followed by an intimate performance from Rita Ora — guest starring Billy Porter.