Nike Reports Strong Quarter with $9.6B Revenue, Women's Business Thrives
Nike has reported a strong quarter with increased revenues and profits. The sportswear giant saw a 7% rise in revenues to $9.6 billion, driven by growth in its Sportswear and Jordan categories, footwear, and apparel. Net income stood at $1.1 billion, a significant turnaround from last year's loss of $921 million.
The growth was largely attributed to the success of the Nike brand, which saw revenues increase 12% to $9.1 billion on a currency-neutral basis. The Sportswear and Jordan categories, along with footwear and apparel, were key drivers of this growth. Notably, Nike's women's business is outpacing men's, with the Air Max Dia performing particularly well.
Gross margin also improved, increasing 130 basis points to 45.1%. Innovative store concepts like Nike House of Innovation and Nike Live have been driving growth in major markets like New York and Los Angeles.
However, not all segments performed equally. Converse revenues decreased 2% to $463 million. Nike also faces a legal challenge, with a former employee, Ahmer Inam, filing a lawsuit alleging racial discrimination.
Despite the legal challenge and Converse's decline, Nike's overall performance remains robust. The company plans to expand its inclusive sizing with over 40 new bra styles, focusing on plus-size apparel. With strong revenues and a growing women's business, Nike looks set to continue its momentum.
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