Nike wants to cut second-tier brands with poor performance

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Recently, Nike announced that it will reduce some of the poorer brands. The company also stated that the increase in sales revenue in the first quarter and the increase in future orders resulted in a 51% increase in net income for the company in the quarter.

Recently, Nike announced that it will reduce some of the poorer brands. The company also stated that the increase in sales revenue in the first quarter and the increase in future orders resulted in a 51% increase in net income for the company in the quarter.

In the quarter, the company’s total revenue increased by 11% to US$4.7 billion and its net income reached US$569.7 million. The second-tier brands only earned $628 million, and those brands that did not contribute enough to the company's long-term plans will become the company's focus. Brands that have been identified as being eliminated include the ice hockey brand Nike Bauer Hockey, while other brands under consideration include Converse, Nike Golf, Exeter, and Hurley.

Nike's prospects in the US market are not optimistic, which can be inspiration from the difficulties experienced by its competitors Foot Locker and Finish Line in the retail industry. In the quarter, Nike’s sales in the United States grew by only 2%, and it is expected to reach 7.3%. However, Nike's performance in overseas markets is very good. The company's sales in Europe have achieved growth, especially in the UK, while sales in the Asia-Pacific region have also continued to grow, with China being particularly prominent.

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