Amid the reported recession in China’s economy, Nike proudly shared that its sales have spiked, especially in the female market.
Whether it's pure luck or a miracle, Nike has just proven that a company can still earn a lot amid a delicate economy. According to Forbes, Nike's quarterly earnings report that was released last Thursday showed that the company's sales increased by 30 percent in Greater China.
The report covered three months and the records included the sales of the company as of Aug. 31. Overall, Nike earned $886 million from the Greater China market and the said figure is just less than 15% of the company's $8.4 billion revenue as indicated in the quarterly report.
Analysts were left stunned by Nike's report since many were not expecting much from the company's performance in China.
Piper Jaffray's Erinn Murphy wrote Friday to his clients, "Most surprising to us was what appears to be very strong demand out of China, despite broader macro concerns."
In the previous quarter, Nike's sales rose by 18 percent, showing good reception to the brand in the Chinese market.
Nike chief Financial Officer Andrew Champion said, "While we are very mindful of the macroeconomic volatility in China, our brand has never been stronger and our marketplace has never been more healthy," as quoted by CNBC.
Meanwhile, the greatest contributor in the 30 percent growth in Nike's China sales was said to be the female market, which was up by double digits.
With Nike's market growth, it won't be surprising if the company continues its streak despite the global economy's volatility provided that it continues to market its products well.
Seeking Alpha also noted that the strong performance of Nike also indicates that there may be other companies out there that are also outperforming expectations amid the tough conditions in the economy at present.
