NIKE (NYSE:NKE) has impressed Wall Street with strong quarterly revenue growth, a sign that its targeted strategy is still delivering.
The sportswear group beat market expectations with second quarter revenue of US$7.7bn, up 4% (12% on a constant currency basis), and revealed a 22% improvement in per share earnings to 90 cents.
It added that worldwide future orders were up 15% compared to this time last year.
Mark Parker, NIKE chief executive, in a statement said: “Our strong Q2 growth and profitability show that NIKE continues to drive real momentum through the Category Offense – by going deep with consumers by sport and serving them completely.”
Parker also highlighted a positive outlook, saying there was “tremendous opportunity ahead” in 2016, which is host to the Olympics in Brazil and soccer’s UEFA European Championship in France.
Ahead of these high profile, major sporting events NIKE has ‘a full pipeline of inspiring innovation for athletes everywhere,’ according to Parker.
NIKE’s model focusses on key markets, by sport, where it identifies leading athletes which become cornerstones in the marketing process.
This framework, perhaps known best via the association with Michael Jordan through the 1990s, sees NIKE team up with soccer stars such as Cristiano Ronaldo and Wayne Rooney, tennis legend Roger Federer and just weeks ago reached new levels with the first ‘lifetime’ deal with basketball icon LeBron James estimated to be worth more than US$500mln.
James had, via prior, contracts already banked some US$90mln from the sportswear group.