Clothing Retailers Fall Into "Cold Winter" What Does Nike Break Through?

According to the latest weather forecast, the United States is experiencing a warm winter.

It may be very pleasant for people who are afraid of cold, but it may not be too optimistic for the clothing industry to make a living.

According to Bank of America data, clothing sales in October decreased by 2.5% compared with the same period last year, but Nike has not been affected by the warm winter.

Compared to Nike's biggest rival, Under Armour, even if there are

No war boots can restore the scarlet record of its financial report.

In December 23rd, the Quarterly Bulletin released by Nike showed that the company has achieved two digit sales growth for the eighth consecutive quarter.

At the same time, the share price has risen by 37%.

However,

Did it really escape the influence of this "cold winter"? Not necessarily.

The two quarter's earnings report showed that Nike's product inventories grew by 11% over the same period last year.

For sports industry, excessive inventory means risk.

However, excluding the effect of exchange rate, Nike's orders increased by 20% between December 2015 and April 2016.

This shows that Nike's inventory situation can be improved to a large extent.

But even Nike's sales of basketball shoes are growing, LeBron series.

And so on has shown signs of slowing down.

Why can Nike easily resist the "cold winter" of this clothing retailer in the US public forecast, "we can hardly see the traces of winter"?

Because Nike's 2/3 sales mainly come from footwear products, and the proportion of overseas market share of the brand is larger than that of the US market, so that the second ranking sports giant can easily avoid the erosion of "cold winter" to financial reports.

Its rival, Under Armour, focuses on clothing products. At the same time, its attention to the local market is far more than that of overseas markets. Overseas expansion is slow and weak.

At the same time, Nike needs to remain vigilant with the "burst" market fever of rival Under Armour's Curry boots.