Nike’s suppliers invest in ‘manufacturing revolution’
24/03/2014
“There are two factors that are really driving a lot of our priorities in this manufacturing revolution. One is to create the capability to create new innovation and product that the consumers can experience. Flyknit is a great example of a process,” said Nike CEO Mark Parker. “And 3D printing allows us to do things that conventional shoemaking or product manufacturing processes won’t allow us to do.”
The company reported sales for the third quarter, which ended on February 28, were up 13% to $7 billion.
In terms of what it describes as a “manufacturing revolution”, Nike’s chief financial officer, Don Blair said investments are being made in partnership with its suppliers. “You won’t see all of this investment on our books. In fact, in many cases, the factory partners are going to make most of this investment. We are really the drivers of the innovation, the catalyst, we have got a long list of opportunities ahead of us.”
Last summer, Nike suggested it could counter rising labour costs by making more Flyknit designs.
Revenues for nearly every category increased double-digits led by running, football and sportswear. Sales rose 7% in Greater China, 22% in Central and Eastern Europe, 13% in North America and 10% in emerging markets. Revenues in Japan fell 9%, attributed to the weaker yen.
Nike forecasts sales to grow by a high single digit in the fourth quarter.
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