Nike reports quarterly loss but is optimistic about North America
26/03/2018
Revenue from the Nike brand was up 4% year on year to $8.5 billion, driven by growth in a number of regions and from sales of the brand’s basketball products.
The Converse brand achieved sales of $483 million, down 8% compared to the same quarter of last year. This was primarily down to declines in North America.
Nike reported a net loss of $921 in the quarter. It attributed this to “significantly higher income tax expense” due to the enactment of a new tax law in the US. This led the company to incur additional costs of $2 billion during the quarter.
Despite another fall in revenue from the North American market, this time of 4%, Nike CEO Mark Parker said the company expects to see a “significant reversal of trend” in the region. He explained that this momentum will be driven by increased innovation and a greater focus on the customer experience.
Share this story:
