STREAMING NOW: Watch Now

China has some companies worried. Not Nike

Signs that the world economy is starting to weaken have alarmed investors. Some global companies have warned...

Posted: Dec 21, 2018 8:14 AM
Updated: Dec 21, 2018 8:14 AM

Signs that the world economy is starting to weaken have alarmed investors. Some global companies have warned of a slowdown in China. But things are looking good for Nike.

Nike's sales surged 10% in the three months that ended November 30 from the same quarter a year ago, the company said Thursday. That included a 26% increase in China, thanks to sales from the country's Black Friday-like Singles Day and demand for sneakers like Air Jordan.

Companies

Nike Inc

Asia

China

Continents and regions

East Asia

Banking, finance and investments

Business, economy and trade

Financial markets and investing

Economy and economic indicators

Wall Street

Business and industry sectors

Clothing and accessories

Consumer products

Footwear

Nike (NKE) is considered a bellwether of the broader economy. Its stock has fallen 18% over the last three months during the wider market slide. Shares rallied 7% after hours.

Investors are worried about the possibility of Chinese tariffs on clothing and sneakers, which would strike at Nike, the world's largest sportswear company.

The Chinese economy has weakened lately, in part from the trade war between Beijing and Washington. The dollar has strengthened against the yuan, which makes US products more expensive for Chinese consumers. Last month, Tiffany said Chinese tourists were spending less on jewelery.

But Nike has bucked the trend, due in part to its aggressive digital growth.

"A key part of our strategy to win in this environment is to double down on digital," CEO Mark Parker said.

Nike has reinvented itself for the digital era. It wants to sell more shoes and clothes directly to consumers, instead of through retailers. These sales carry higher margins and also give Nike total control over how its products are displayed and marketed.

The company has taken several steps toward its goal, including narrowing its focus to a dozen major cities, cutting out struggling retail partners and relaunching its membership app, NikePlus.

In North America, Nike's biggest market, sales increased 9% from the same time last year.

The results show there were no side effects from its decision to make Colin Kaepernick a face of its "Just Do It" anniversary campaign in September.

The former San Francisco 49ers quarterback, who has not played in the NFL since the 2016 season, sparked a firestorm when he sat and later knelt during the National Anthem to protest police brutality and racial injustice. President Donald Trump even rebuked Nike after the campaign launched, asking, "What was Nike thinking?" on Twitter.

Nike's decision was a bet on its core customers: Younger Americans in big cities. More people aged 18 to 34 supported the Kaepernick ad than those who opposed it, according to an SSRS Omnibus poll provided exclusively to CNN in September.

Nike said on Thursday that it sees more opportunities to sell mid-priced sneakers, instead of its usual pricey basketball shoes. It will also launch yoga clothing for men for the first time to tap into the athleisure market. Gap recently made a similar move. It launched Hill City in September after success with its women's Athleta brand.

Huntsville
Few Clouds
77° wxIcon
Hi: 88° Lo: 68°
Feels Like: 79°
Florence
Clear
78° wxIcon
Hi: 89° Lo: 70°
Feels Like: 80°
Fayetteville
Few Clouds
75° wxIcon
Hi: 84° Lo: 68°
Feels Like: 75°
Decatur
Clear
78° wxIcon
Hi: 87° Lo: 69°
Feels Like: 80°
Scottsboro
Overcast
73° wxIcon
Hi: 86° Lo: 67°
Feels Like: 73°
WAAY Radar
WAAY WAAY-TV Cam
WAAY Temperatures

Alabama Coronavirus Cases

Confirmed Cases: 14986

Reported Deaths: 566
CountyConfirmedDeaths
Mobile1996109
Jefferson161488
Montgomery118630
Marshall6499
Tuscaloosa50512
Lee49832
Franklin4476
Shelby43319
Tallapoosa39662
Butler34411
Chambers33623
Madison2964
Baldwin2749
Elmore2637
Etowah23610
DeKalb2213
Coffee2001
Walker1981
Dallas1973
Sumter1916
Lowndes18610
Houston1644
Morgan1621
Autauga1593
Calhoun1413
Choctaw1414
Pike1360
Colbert1362
Marengo1336
Hale1293
Russell1280
Lauderdale1282
Randolph1257
Wilcox1187
Marion11310
Bullock1111
Barbour1101
Clarke1022
St. Clair1021
Pickens934
Talladega912
Greene894
Chilton871
Dale830
Cullman760
Limestone740
Jackson692
Covington651
Washington645
Winston620
Macon602
Bibb591
Crenshaw582
Henry562
Blount491
Escambia433
Lawrence420
Coosa331
Geneva330
Cherokee332
Perry310
Monroe282
Clay272
Conecuh251
Lamar200
Cleburne131
Fayette110
Unassigned00

Tennessee Coronavirus Cases

Confirmed Cases: 20111

Reported Deaths: 336
CountyConfirmedDeaths
Davidson451857
Shelby433694
Trousdale13934
Rutherford99822
Sumner81145
Bledsoe6071
Hamilton55214
Williamson51210
Tipton4263
Lake4090
Putnam3775
Robertson3711
Wilson3558
Out of TN3394
Knox3315
Bedford2654
Montgomery2403
Rhea1950
Hardeman1890
Madison1652
McMinn13413
Loudon1320
Cumberland1091
Fayette1072
Cheatham1040
Dickson1010
Macon1003
Bradley931
Blount823
Maury780
Unassigned750
Washington730
Sevier722
Coffee650
Wayne630
Sullivan612
Gibson611
Monroe572
Hickman540
Lauderdale511
Greene482
Dyer480
Franklin461
Anderson391
Marion361
DeKalb330
Hawkins312
Grundy311
Smith301
Haywood292
Henry290
Marshall281
Jefferson270
White270
Carroll271
Hamblen262
Lincoln260
Weakley260
Meigs250
Obion241
Lawrence240
Overton200
Cocke200
Carter191
Warren190
Morgan170
Cannon170
Campbell171
Jackson170
Crockett151
Roane150
Johnson150
Polk140
Perry130
McNairy120
Henderson120
Chester120
Giles120
Humphreys121
Hardin112
Scott110
Sequatchie100
Fentress100
Stewart90
Claiborne80
Houston70
Benton71
Clay70
Grainger60
Decatur50
Van Buren40
Union40
Lewis30
Moore30
Pickett30
Unicoi30
Hancock10

 

 

Community Events