Nike keeps up the pace

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NikeThe quarterly results of were not affected by production problems in Asia: the manufacturer considers these good results as proof that its direct-to-consumer sales strategy is the right one.

Higher investments

Nike achieved revenue growth of 5% to 10.9 billion dollars (10 billion euros) in the third quarter of its broken fiscal year. It’s better than expected, mainly because the sneaker maker has faced production issues in Asia due to lockdowns. Growth was strongest in North America, only China saw a decline in sales. Net profit, however, fell to 1.4 billion dollars (1.2 billion euros) as the manufacturer increased its investments in marketing and technology.

The good results prove that Nike’s strategy to approach consumers more directly is the right one, underlines CEO John Donahoe. This approach arms the company against market volatility. Sales of Nike Direct increased by 15%, in part due to a normalization of traffic in directly operated stores. Digital sales increased by 19%.

The press release does not take stock of the impact of the war in Ukraine. Nike did shut down its Russian online store, but physical stores in the country, which are run by partners, would remain at least partially open.

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Nike’s quarterly results have not been affected by production problems in Asia: the manufacturer considers these good results as proof that its direct-to-consumer strategy is the right one. Increase in investments Nike achieved a growth in turnover of 5% to 10.9 billion dollars (10 billion euros) in the third quarter of its interrupted financial year. It’s better than expected, mainly because the sneaker maker has faced production issues in Asia due to lockdowns. Growth was strongest in North America, only China saw a decline in sales. Net profit, however, fell to 1.4 billion dollars (1.2 billion euros) as the manufacturer increased its investments…

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