Nike claims to be leading the market in the EMEA region, where its sales grew by 9 percent in constant currencies in the fourth quarter as compared to the period a year ago, when they were boosted by the men's version of the Fifa World Cup. It continues to boast the leadership in all the five major cities.
Digital sales went up by 35 percent in the region, as on a global basis, and deeper connections were established with major wholesale clients like JD Sports Fashion and Zalando.
Full-year sales went up at a higher rate of 11 percent on a currency-neutral basis in the region, generating strong expansion in the gross margin. On a reported basis, the EMEA region generated a 7 percent higher turnover of $6.29 billion for the year.
As usual, the strongest growth came from Greater China, where revenues rose by nearly $1 billion in the past year, reaching a level of $4.28 billion. They increased on a currency-neutral basis by 22 percent in the quarter, with a 37 percent increase in the digital channel. They were up by 24 percent for the full financial year.
In the bigger and more mature North American market, where the top line reached $15.9 billion for the year, Nike's sales increased by 7 percent for the full year and by 8 percent in the fourth quarter in terms of constant currencies, contrasting with the general development of the group. Double-digit increases were scored with strategic wholesale partners like Foot Locker, Dick's Sporting Goods and Nordstrom.
Currency-neutral sales increased by 9 percent in the Asia-Pacific and Latin American regions outside Greater China for the quarter and by 13 percent for the full year. Nike claims to be the favorite brand in key cities such as Tokyo, Seoul and Mexico City as well as throughout Southeast Asia.
The EMEA region supported the strong increase in Nike's profits, which rose by 32 percent in the fourth quarter to $506 million and by 26 percent to $1,995 million for the year. The North American region's profits grew by 7 percent to $1,048 million in the quarter and by 9 percent to $3,925 million for the year. China remained comfortably in second place with profits of $674 million for the quarter and $2,376 million for year – up by 25 percent and 31 percent, respectively. In the rest of the world, profits were flat for the quarter at $340 million but up by 11 percent for the year to $1,323 million.
