Although Nike's projection of more favorable transportation costs and strong full-price sell-through of merchandise indicates positive signs for margin performance, there are concerns about the company's expectations regarding selling, general, and administrative expenses. These expenses, including marketing spend, are anticipated to rise slightly faster than revenue as Nike invests in driving demand prior to key sporting events.
Being a global brand with $51 billion in annual revenue, Nike is susceptible to economic softness in the global market. Weak demand in Europe limited the company's growth to single-digit increases in that region. Furthermore, apparel sales in North America experienced a decline of 2% during the quarter, indicating weakness in its domestic market.
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Being a global brand with $51 billion in annual revenue, Nike is susceptible to economic softness in the global market. Weak demand in Europe limited the company's growth to single-digit increases in that region. Furthermore, apparel sales in North America experienced a decline of 2% during the quarter, indicating weakness in its domestic market.
Risk Disclosure: Trading Foreign Exchange (Forex) and Contracts of Difference (CFD's) carries a high level of risk. By registering and signing up, any client affirms their understanding of their own personal accountability for all transactions performed within their account and recognizes the risks associated with trading on such markets and on such sites. Furthermore, one understands that the company carries zero influence over transactions, markets, and trading signals, therefore, cannot be held liable nor guarantee any profits or losses.