U.S. Markets closed

Nike says still more work to do to capture China's long term growth potential

On Nike's (NKE) Q3 earnings conference call, management said, "The NIKE Brand continues to expand the market and gain share in North America. In China we are seeing progress against our strategy to reset the marketplace, but we still have more to do before we can capture its long-term growth potential. In Europe, we are still in the early stages of implementing the category offense. There is good momentum for NIKE in Germany, the UK, and in the developing markets of Central and Eastern Europe." They expect Q4 reported revenues for Greater China will be lower than the futures orders would indicate. Despite this, they said China was an important part of NIKE's long-term growth goals, and therefore the company would not take any shortcuts. They said their main area of focus for inventory management continues to be China as they take action to balance supply and demand at the retail level.