posted higher sales in the last quarter, helped by strong demand in both the US and China. Executives said that the trade dispute between the two countries has not hurt the business of the sneaker giant.
"We have not seen any impact on our business to date and we continue to see strong momentum," said Nike boss Mark Parker in a conference call on Thursday.
The Trump administration increased tariffs to $ 200 billion of Chinese imports by 25% in May. It has threatened to impose new tariffs on another $ 300 billion for Chinese imports, including footwear. President Trump will meet with Chinese leaders at the G-20 summit this week to renew trade negotiations.
Nike, which does not have its own factories, produces about 25% of its global clothing and footwear in China. However, executives said the company could source from factories in other countries to mitigate potential tariffs on the US market.
"While it is certainly dynamic in terms of trade, we are relatively well positioned," Parker said.
For the fourth quarter of the company, total revenue increased 4% to $ 1
The Beaverton, Ore., Based company earned $ 989 million, or 62 cents a share, from $ 1.14 billion, or 69 cents a share, a year ago. New technology spending and a higher tax rate than a year ago had a negative impact on earnings.
Nike has used its digital apps to increase online revenue and reduce reliance on traditional businesses. Digital revenue grew 35% in fiscal 2019 after Nike invested more than $ 1 billion in apps and other features during the year, Parker said. He estimates that digital transactions will account for at least 30% of Nike's business by 2023.
For the new fiscal year, the company reiterated its past financial projections that revenue will increase many times without currency fluctuations. Set percentage. On this basis, sales in the fiscal year ended May 31 increased by 7.5%.
"We expect another year of broad growth, with all four regions meeting our long-term financial model," said CFO Andrew Campion. He said the company was under increased pressure on profit margins due to currency fluctuations and spending on supply chain projects, such as adding RFID tags to each product. In the fourth quarter, revenue increased 4% year-over-year.
Nike shares, which gained 13% this year, rose 1.3% on Thursday to $ 83.66 after the close.