According to the company’s second quarter report, the world largest sport apparel company have exceed analyst’s expectation with 8 percent revenue growth and report earnings of $0.86 per share. Earlier this month, Nike joined the Dow alongside Goldman Sachs and Visa, becoming the sole apparel-maker on the index. Those three filled spots vacated by Alcoa Hewlett-Packard (HP) and Bank of America, which were removed from the benchmark index because of their low stock price. Nike have shown some outstanding result as newbie of Dow member this week. Not only the firm have hit its record of $70 per share; its year-to-date gain of 34% through Wednesday ranked the stock as the second best performer in its new index family. Nike also stated revenue growth in every part of the world except for in China, where it declined 3%. Analyst points out that the strong competition is the main factor that cause the negative growth in China. Chinese consumer preference tend to shift toward Nike’s biggest rival, Adidas, because Adidas often introduces more fashionable merchandises to attract buyers. Trevor Edwards, brand president of Nike, says that China is still their key focus and they are taking “decisive “action to reset the market by store layout and product selection. Next year, the company’s marketing strategy is going to target on the World Cup in Brazil. Edwards said that Nike intend to build up their brand as the leading football brand in the world.
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“Nike Earnings Just Did It.” CNNMoney. Cable News Network, 26 Sept. 2013. Web. 28 Sept. 2013. <http://money.cnn.com/2013/09/26/investing/nike-earnings/index.html?iid=SF_INV_River>
Cheng, Andria. “Can Nike, Newbie on the Dow, Continue to Deliver?” MarketWatch: TheWallstreet Journal. Marketwatch, 26 Sept. 2013. Web. 28 Sept. 2013. <http://blogs.marketwatch.com/behindthestorefront/2013/09/26/can-nike-newbie-on-the-dow-continue-to-deliver/>.