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Flat revenues, but Nike focuses on digital

Sportswear company Nike has reported flat revenues of $9.1 billion for its first quarter, after suffering ‘currency headwinds’ and falling sales in North America. 

Revenues for the Nike brand were $8.6 billion, up 2% on a currency-neutral basis, driven by growth in Greater China, Europe and Asia-Pacific, including growth in sportswear. 

Revenues for Converse were $483 million, down 16%, mainly driven by declines in North America.

Trevor Edwards, president of the Nike brand, discussed with investors how important the tie-up with NBA basketball will be, and also said digital will be a big driver, especially in China, and that the company would be investing more in the channel.

CEO Mark Parker added: “In the short to medium-term, we will prudently manage risk as we focus on accelerating a shift in the composition of the market to experiences that consumers are increasingly telling us that they love. Those being digitally-enabled experiences that bring together the best of Nike’s brand, product and services.

“That begins with, and mobile experiences such as our NIKE and sneakers apps and NIKE-owned stores. Our 2X Direct strategy will extend into the broader marketplace through new experiences that we are creating with strategic partners, such as Foot Locker and DICK’S Sporting Goods that will bring the Nike Brand closer to our consumer.”

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