Nike finally handed over a quarterly earnings and profits that exceeded Wall Street’s expectations and confirmed that it will cooperate with Amazon to sell shoes. The Western European and Chinese markets have performed well, but the largest US market is still weak. Nike's fourth quarter revenue of 8.7 billion US dollars Net profit rises to 1 billion U.S. dollars Recently, Nike released its financial statements for the fourth quarter and full year of fiscal year 2017 as of May 31, 2017. In the fourth quarter, Nike’s revenue grew by 5% to 8.7 billion U.S. dollars; annual revenue was 34.4 billion U.S. dollars, an increase of 6% year-on-year. In terms of sub-brands, Nike’s lifestyle brand Converse has the highest growth rate, reaching 10%. Nike's brand growth rate of the same name is about 8%, of which sports equipment, running series and basketball shoes Jordan growth is better, and other golf, basketball, football series products are negative growth. In the fourth quarter, Nike’s net profit rose from US$846 million last year to US$1 billion, which was mainly due to the decrease in sales, management fees, and tax rates. However, the gross profit margin has declined, from 45.9% to 44.1%, mainly due to changes in exchange rates and rising costs of manufacturing shoes. Performance exceeds Wall Street expectations But the competitor is strong and the North American home market is still weak Although Nike’s revenue and profit in the fourth quarter surpassed Wall Street’s expectations, there was still a certain gap between Adidas’s growth rate in the first quarter of 2017. During the period, Adidas’ overall global sales volume increased by 20% and China’s region increased by 30%. The United States’ regional growth rate is as high as 31%. And its competitor Adidas is gaining momentum. Its footwear market share has doubled from 6.3% in May 2016 to 11.3% in May 2017. Market share is the process of shifting, and Adidas is eroding Nike after its recovery. The most important share of the U.S. market. All this made Nike unable to take it lightly after sending out a fairly good financial report. Nike will take innovation and positive actions Further expand profitability In addition to publishing earnings reports, Nike also confirmed on the phone with analysts and investors that it will cooperate with Amazon to sell products including sports shoes, apparel and accessories on its e-commerce platform. After Nike’s official arrival, it can face consumers and better grasp pricing power. According to the Wall Street Journal, in exchange, Amazon needs to develop stricter anti-counterfeit measures and control the number of similar distributors on its website. Nike hopes to improve the experience of Amazon Nike consumers. However, the relationship between the two is still at an early stage, Nike will continue to assess the role of the Amazon platform. ChristianBuss, Credit Suisse analyst, said that although the US retail industry is in a very difficult situation, Nike will benefit from product innovation and high-end product bargaining power. Nike CEO Mark Parker also said that 2017 will be a year of innovation and positive action, especially in the supply chain of products, to achieve rapid delivery. Earlier this month, Nike announced plans to cut a quarter of its products, lay off 2% of the world, and launch a new business structure. Nike said that in fiscal year 2018, sales growth is expected to reach mid to high digits (between 6% and 9%), and after 2019, Nike’s profitability will further expand. Adidas, its rival, did not slow down the pace of development. It recently launched a summer training event in China to integrate products into the lifestyle and created a huge offline consumer experience. In the future, in this sports retail market, there will be more scenes of mutualism. Educational Globe,Educational Toy Globe,Educational Kids Globe,Best Educational Globe Ningbo Holly Arts & Crafts Co.,Ltd. , https://www.world-globe.com
The growth of revenue in the fourth quarter was mainly concentrated in Western Europe (11%), China (17%) and emerging markets (14%) in Middle East and Africa, excluding the impact of exchange rates, and these markets’ revenue growth rates reached double-digit percentages. However, the brand's most important US market revenue only grew by 3%. 
And from NPD's latest North American footwear market data released in May, the market share of Nike sports shoes dropped from 35.9% last year to 34.7%, and its basketball shoe brand Jordan's market share dropped from 14.8% last year to 11.8. %. 