Nike Sees Profits Rise
After a difficult trading period, where many leading brands have seen profits fall, it’s good to see Nike posting a rise.
Nike might be the world’s leading sportswear and equipment brand, but that doesn’t protect the company from a global recession. In fact, in some ways it makes it more vulnerable. Nike has suffered from a downturn in sales over the past 12 months or more, with demand slowing across the world. In order to keep profits reasonable, the company had to undertake the biggest job cuts programme in its history.Nike On The Up?
In the key retail period coming up to Christmas, Nike will be hoping that demand for its products improve so that its next figures look even better. Although its latest reported figures only show a slight increase from the same time last year, and global orders to the end of January 2010 are down, a good Christmas and New Year trading period will help Nike to see the light at the end of the tunnel, with hopes that forward orders will pick up on the back of good sales. Still investing in research and development for its cutting edge sportswear, footwear and equipment, Nike has to balance the cost of this progress with the revenue from its more general lines. The company needs to maintain its brand awareness through advertising, marketing and sponsorship, all of which cost money, so the company has to manage its cash carefully until things start to pick up on a more consistent basis.Buying Nike
That doesn’t mean that Nike sales have collapsed. The company’s revenues were still $4.8bn at August 31 2009, so there are still plenty of people buying Nike around the world. Whether it’s serious running shoes, fashion accessories, bags or replica kit, Nike is still pulling in sales across its business, giving it some confidence that things will improve along with the global economy. Nike fans are loyal, and will continue to buy the brand, and it is up to the company to secure a profitable future for itself through innovative products and marketing.Nike at FootAsylum
Nike is one of our most popular brands at FootAsylum and we’re encouraging our customers to buy Nike and other brands by keeping our prices as competitive as possible. With a great range to choose from, there’s no reason why you can’t be wearing the latest Nike clothing and footwear, helping to sustain a company that’s part of everyday life. You can browse our site and buy today.