Nike’s switch in marketing focus drives revenue lift

Nike says its decision to focus more resources on marketing its core running, football and basketball categories has paid dividends as it reported a 8 per cent increase in revenue in its latest fiscal quarter.

Brazilian footballer Neymar fronted the activity for Nike’s HyperVenom boot.

The sportswear manufacturer said the reset, first announced 18 months ago in the hope of carving out a larger chunk of the sportswear market, lifted global revenue to $7bn in the three months to 31 August. Income from Western European markets increased 11 per cent to $1.30bn, the company adds.

Nike says the restructure had stunted growth in previous quarters prior to its completion, but the changes are now set to “capture the next wave of growth in this geography”.

Trevor Edwards, incoming president and currently executive president of brand and category management at Nike, said the move now offers“centralised” and “consistent consumer experience”.
He adds: “Our results in Western Europe demonstrate that our strategies are working, there is still a lot of work to be done and opportunity to be captured, but the early returns are very positive. We see Western Europe as a strong driver for growth for the Nike brand for the long-term.”

Sales for the Nike brand increased 7 per cent in the quarter with campaigns for the Flyknit running shoe and its Hypervenom football boot credited for improving sales. The Hypervenom campaign, fronted by Barcelona FCB footballer Neymar, was hailed as the “most successful boot launch in Nike history”, according to the business.

Nike said it would exploit the “energy” around next year’s World Cup in Brazil with football activity featuring high-profile ambassadors such as Real Madrid’s Cristiano Ronaldo and Manchester United’s Wayne Rooney.

It also revealed plans to accelerate its innovation pipeline over the next 12 months teasing “some real breakthroughs and game changers” in its core categories.

Elsewhere, Converse sales rose 16 per cent in the period following a period of heavy investment in the brand to broaden its appeal to new markets. Nike said it would look to “unlock” growth in the brand’s apparel business to drive long-term growth. Moving forward, Converse will now be reported as a separate segment, the sportswear maker revealed.

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