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Jogging Forward in Chins

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Jogging forward in China
The only problems in the quarter for Nike were Western Europe and Greater China. Weakness in Europe is expected due to the economic situation in that region. China, however, is a concern for Nike. Inventories in China have increased and the company was forced to discount its products. Nike expects sales in China to be down in the next quarter.
The good thing about Nike is that it's quick to make adjustments in the marketplace. The company has been working to reduce its inventory in China and reworking its product line to meet the tastes of the Chinese consumer. In May, the company replaced its executive in charge of Greater China. Nike realizes changes need to be made to succeed in China and the company is doing so. CEO Mark Parker said:
The race in China is a marathon. It's not a sprint, and we're set for the long-run.
China is where the next phase of growth is for Nike. Consider that Nike just opened its first running store and basketball store last year in China. Comparable growth in its own store is in the double digits. Nike is seeing what's working in its own store and will use that information to grow with its retail partners. Nike also benefits from the Chinese consumer's love of basketball. Nike has contracts with the biggest names in basketball to market to this growing audience.
Innovation
The focus at Nike is on innovation and developing new products. Nike will have the opportunity to showcase that innovation with the Winter Olympics, the Super Bowl, and the World Cup. Nike expects revenue in the next quarter to grow in the mid to high-single digit rate. For the full year, the company expects revenue to be in the upper end of the high-single digit rate as demand increases due to the World Cup in Brazil. Nike expects earnings to grow faster than revenue and be in the low double-digit rate.
The competition
Nike's biggest

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