Nike (NKE) reported fiscal Q4 earnings Thursday after the bell, and while the Oregon-headquartered company beat on revenue, it missed the mark on earnings. While the prospect of additional tariffs on Chinese imports still looms large over the sportswear world — Nike said trade tensions have had no impact on its business in the country.
“We have not seen any impact on our business to date. And we continue to see strong momentum as we enter fiscal year ’20,” CFO Andrew Campion noted in its earnings call.
He also added that revenue in Greater China increased 24% on a currency-neutral basis for the full year.
"Over the course of fiscal year '19, all categories drove growth in China with the exception of Global Football ...The primary drivers of growth or the biggest drivers of growth were Nike sportswear, basketball, Jordan. Running grew, Training but in general, extremely broad-based across men's and women's and well led by digital, also broad-based across the marketplace."
China plays a crucial role in Nike's overall business. The company has added $1 billion of incremental growth in greater China. CEO Mark Parker said that Nike remains "a brand of China and for China."
Matt Powell, NPD Group vice president, and senior industry advisor, tells Yahoo Finance that while basketball sneakers are decreasing in popularity in the U.S., they are on the rise in China. For this reason, the company has consciously pushed the Jordan brand in the country — and the move has seemed to have paid off. According to Nike, both Jordan performance and lifestyle offerings have performed well in Greater China.
The next step of Nike's business evolution in China will be to expand its digital platform in the country. The Nike app saw triple-digit revenue growth in Q4, and the company will launch the app for the first time in China in the first half of fiscal year '20, Parker said.
Reggie Wade is a writer for Yahoo Finance. Follow him on Twitter at @ReggieWade.