The one company whose business doesn’t seem to have been much affected by the impact of the US-China lingering trade war is Nike. This is evident from the fourth-quarter earnings reported by the international shoe manufacturer on Thursday. The company has displayed remarkable sales growth in China, as per its earnings report.
According to statistics shared by Refinitiv, Nike’s adjusted earnings per share have been reported to be 62 cents, which is just short of 66 cents as expected by Wall Street analysts. Further, the company has made a revenue of $10.2 billion in its fourth quarter, which too has slightly surpassed predictions.
The commendable reports come just when Wall Street has been keenly eyeing the likely impact of the US government’s changing policies with regard to China on Nike’s business. In the latest development, the US government is believed to impose a further 25% tariff on the $300 billion in products manufactured in China.
Now, approximately 25% of Nike’s goods are made in China; however, its officials say that the company has a strong positioning in the market to endure any ongoing tensions over the international trade dispute.
Nike’s CFO Andy Campion says, “We have not seen any impact on our business to date’’.
While the company reported sales of $4.2 billion in North America, an increase of 8% from the last time, its China market sales were reported at a whopping $1.7 billion, up 22%. In fact, Nike was one of the several companies to plea before the US government to reconsider its decision regarding imposition of further tariffs on products manufactured in China.
Another of the policy changes announced by the Trump administration refers to imposing 25% tariffs on an additional $300 billion worth of imports from China. According to the US, this would be considered for implementation after the public comment period ends on July 2, 2019, and the two world leaders are still not able to arrive at a consensus via talks to end the trade war.