NIKE RELEASES THE CORPORATE REPORT ON PROFIT AND OUTLINES THE COMPANY’S INTENTION TO OPEN NEW MARKETS
BEAVERTON, Ore., March 20, 2014-NIKE, Inc. (NYSE:NKE) today released the 2014 quarter results that recorded an increase in revenue by 13 percent. The company recorded a total of $7 billion that increased the diluted earnings per share by 4 percent to record $0.76.
According to Mark Parker, President & Chied Executive Officer, Nike’s fiscal 2014 third quarter results saw an increase of 13% revenue growth. Moreover, the gross margins increased by 44.5%, which means that Nike brands were preferred in over 190 countries where the company operates. The president asserted that the high revenue growth was driven by company innovations that connected with the needs of the customer. In addition, the Nike brands are made from first class materials and innovative designs attractive to the company’s wide customer base. The supply chain and the financial management teams workers together to maintain a sustainable and profitable growth. Conversely, Nike recorded losses worth $45 million through foreign exchange .The dynamic foreign currency fluctuations affected the losses and the gains incurred by the company. The currency exchange rates on foreign currency exchange reduced the overall company income by around $ 40.
According to the President of Nike Brand, Trevor Edwards, Nike global brand grew by 23% due to new markets in the developing nations. Nike’s online sales grew by 57% due to digital investment schemes that increased merchandise. The Increased online traffic was gained as a conversion of the global investment in the e-commerce sector.
Regional market like China saw an increase in sales by 7% due to long-term working modalities that created a productive environment for workers, suppliers, and customers trust to consider Nike as the best sport brand. Furthermore, the company increased its presence in the emerging markets by practicing a proper corporate responsibility program in the sports sector where branded T-shirts and shoes were offered freely. Wholesale partners stationed across the world struck the balance between supply and demand to maintain the performance of the sport brand. The management of Nike brand increased their presence in all markets to increase the quality of the brands that customers love to buy and own. Nike purchased 10.4 million shares during the third quarter for around $788 million. The purchase of the shares was a part of a planned four-year economic program worth $8 billion. The program launched in September 2012 saw the company purchase 39.6 million shares worth $2.5 billion at a cost of $63.21 per share by the end of the third quarter. Nike has prospected future orders for company athletic apparel and footwear due for delivery from March to July 2014. The Scheduled orders are approximately $10.9 billion, which is 12 % higher than orders received during the same period in the previous year.
In conclusion, Nike made a high profit from the annual sales due to organized wholesale and supply departments. According to the president of Nike, the reason behind the increased number of orders is attributed to the streamlined wholesale operations and reduced delays on the supply side. The export sector remained connected to the needs of the customer. Similarly, customers love Nike brand because it has maintained a high profile in pursuing a clean name through corporate social responsibility that has increased the company’s approval among many customers.
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