Nike has been feeling the pressure after the rise of rivals adidas and Under Armour but beats profit projections in Q3.
The Oregon based sports giant far exceeded Wall Street profit projections in its third quarter, reporting Thursday that it earned 64 cents a share. Sales are up 5.5% generating $8.4 billion however even that falls slightly below the expected mark.
Still good news and signs that a slight dip in form from one of the worlds biggest brands might be over. Nike boasts a huge repertoire of athletes on their books included global super stars Cristiano Ronaldo and LeBron James.
— Nike (@Nike) February 12, 2017
Mark Parker, Nike chair, chief executive officer, described the period of growth as a “solid” quarter. It comes after predictions from some industry analysts that Nike would suffer its first profit decline in four years.
The sports apparel game is dominated by the big three however the industry was eager to see the results of a series of high profile activations like Paul Pogba with rivals adidas and others with Under Armour.
Although exceeding expectations on Wall Street the slight shock of falling below revenue expectations drove concerns that Nike reign at the top of the pile might be coming to an end.
Parker and other Nike top brass said the company “will remain relentlessly on the offensive” to maintain its position atop the industry.
Nike has committed to its “triple double” strategy to continue to drive growth and expansion in 2017. As Parker explained, that means doubling efforts and focus on three of the leading characteristics that separate the brand from the competition: developing innovative new products, quick delivery, and a better, more personalised experience for consumers.
Nike is hopes their initiative to work closer to home in the US and use factories on American soil is paying off. It has partnered with supply-chain consultants and manufacturing partners to automate the shoe-making process.
Commenting on their desire to meet consumer demands Parker said, “We’re moving faster than ever, getting product to market in weeks, not months.”
Nike is set to feature heavily in the remaining games of March Madness, being kit partners of ten of the remaining sixteen teams. It seems that any signs of Nike toppling from top of the game are unfounded and the leaders of the pack are still firmly cemented in the throne.
Deputy Editor & Social Media Specialist