Nike Inc (NKE. N) reported higher-than-expected quarterly profit on Tuesday, as the world’s largest footwear maker benefited from strong demand in China, its third-biggest market, and cost cuts.
(Reuters) – Nike Inc ( NKE. N) reported higher-than-expected quarterly profit on Tuesday, as the world’s largest footwear maker benefited from strong demand in China, its third-biggest market, and cost cuts.
Nike, which has celebrity endorsements from NBA players such as LeBron James and Kevin Durant, has also been quick to expand its direct-to-consumer presence by testing a pilot program with Amazon ( AMZN. O) and Facebook’s ( FB. O) Instagram, and sprucing up its revenue from China through revamped stores and increased online efforts with Alibaba Group Holding Ltd’s ( BABA. N) Tmall.
The company’s sales in China rose 9 percent in the first quarter ended Aug. 31.
Beaverton, Oregon-based Nike in June said it would cut 2 percent of its global workforce and cut about a quarter of its shoe styles in a bid to become nimbler in the face of intensifying competition from Germany-based Adidas AG ( ADSGn.
