Nike China's income fell or was overtaken by Li Ning

Nike Greater China includes three markets including Mainland China, Hong Kong, China and Taiwan. According to Nike's financial report, Nike Greater China achieved a total revenue of 820 million U.S. dollars in the six months from June to November this year. A person in charge of a domestic sporting goods company told CBN reporter that it is expected that the sales of Nike in the mainland market will be reduced from 10 billion yuan in previous years to 7 billion to 8 billion yuan. Li Ning’s revenue in the first half of this year has exceeded 4 billion yuan. May exceed Nike to take the top spot in the Mainland.

Can Nike break out of the “quagmire”?

Nike’s revenue in the Chinese market has not yet emerged from the “quagmire” of year-on-year declines. According to the latest quarterly financial report, Nike Greater China’s revenue fell by 3% from September to November this year and was caught by Li Ning (02331.HK). More likely.

In the quarterly report released on December 17, as of November 30th, Nike Greater China achieved revenue of US$404 million, a year-on-year decrease of 3%, of which footwear revenue was US$210 million, a year-on-year decrease of 1%, and apparel revenue was US$170 million. , a year-on-year decrease of 7%, sports equipment income of 25 million US dollars, a year-on-year decrease of 2%. At the same time as revenue was reduced, sales and administrative expenses for Nike Greater China increased, resulting in lower profit margins. Earnings before interest and taxes (EBIT) in Nike Greater China decreased by 7% year-on-year to US$126 million.

However, compared with the previous quarter, the decline in income has narrowed. From June to August this year, Nike Greater China achieved revenue of US$416 million, a decrease of 16% year-on-year, and the decline in this quarter has narrowed to 3%. Looking at the number of orders, the market outlook for Nike Greater China seems to have improved. From December 2009 to April 2010, orders in Greater China region are expected to increase by 4% year-on-year, while orders from Greater China region are still down 6% year-on-year from June to August this year.

Nike Greater China includes three markets including Mainland China, Hong Kong, China and Taiwan. According to Nike's financial report, Nike Greater China achieved a total revenue of 820 million U.S. dollars in the six months from June to November this year. A person in charge of a domestic sporting goods company told CBN reporter that it is expected that the sales of Nike in the mainland market will be reduced from 10 billion yuan in previous years to 7 billion to 8 billion yuan. Li Ning’s revenue in the first half of this year has exceeded 4 billion yuan. May exceed Nike to take the top spot in the Mainland.