Nike Inc. said in a SEC filing that NIKE brand's sales in its Greater China segment, including China, Taiwan and Hong Kong, rose 29% in its fiscal year ended May 31, to $1.74 billion from $1.35 billion a year ago. In constant currencies, sales climbed 21%. In the filing, Nike Inc. broke out its past year's results for the brand under a new regional structure.
In the third quarter of fiscal 2009, Nike Inc. initiated a reorganization of the NIKE brand into a new model consisting of six geographies. Beginning in the first quarter of fiscal 2010, the company's new reportable operating segments for the NIKE brand are: North America, Western Europe, Central/Eastern Europe, Greater China, Japan, and Emerging Markets.
Previously, the geographic organization consisted of four regions: U.S., Europe, Middle East and Africa (EMEA), Asia Pacific, and Americas.
Operating earnings in Greater China rose 34% to $575.2 million in the period. By category, sales of footwear in Greater China rose 27% to $939.9 million, apparel sales climbed 29% to $699.6 million; and equipment sales jumped 40% to $103.8 million. In constant dollars, sales rose 20% in footwear, 21% in apparel and 32% in equipment.
From a profit standpoint, its second largest improvement came in its Central and Eastern Europe, where operating earnings climbed 16% last year to $415.1 million. Sales gained 5% to $1.37 billion and rose 9% on a constant currency basis.
In Japan, operating income in FY09 climbed 15% to $205.4 million. Revenues advanced 13% to 925.9 million and were up 1% in constant currencies.
Operating profits in its emerging markets segment climbed 12% to $342.6 million. Sales increased 4% to $1.7 billion from $1.63 billion but jumped 17% on a constant currency basis. Emerging markets include Argentina, Australia, Brazil, Chile, India, Indonesia, Korea, Malaysia, Mexico, New Zealand, Phlippines, Singapore and Thailand.
In the U.S., operating earnings were down 2% to $1.43 billion from $1.46 billion. Revenues gained 2% to $6.78 billion from $6.67 billion. In its second largest segment, Western Europe, operating profits inched ahead 2% to $939.1 million from $922.5 million. Revenues were down 4% to $4.14 billion from $4.32 billion and was off 2% on a constant currency basis.
