Nike'S Tough Enemy Andouble Economics: Yen Depreciation Affects Performance
< p > Global sporting goods giant Nike released its fourth quarter earnings in June 28th. The report shows that Nike's global net profit increased by 22% over the same period, and the revenues in both Europe and America rose.
The US business week wrote that although Nike's performance in the fourth quarter exceeded the expectations of Wall Street analysts, Nike's inability to defeat Abe's economy was directly affected by its depreciation.
< /p >
< p > article also believes that dealing with the exchange rate change has become a very difficult and important topic for the world's major retail brands.
The article points out that after the Japanese Prime Minister Abe Shinzo came to power, the Japanese yen began to accelerate its decline in order to end Japan's domestic deflation and implement a series of economic stimulus policies and loose monetary policy, and the Japanese yen had fallen by about 10% against the US dollar.
< /p >
The depreciation of Japanese yen (P) has a direct impact on Nike's performance in Japan.
According to the financial report, Nike's revenue in the quarter ended May 31st was only 214 million US dollars, down 11% compared to the same period last year.
As Donald Blair, chief financial officer of Nike, said, "exchange rate changes have caused great resistance to Nike's performance."
< /p >
The poor performance of P has sounded the alarm for Nike. To deal with the impact of exchange rate changes has become a thorny problem that can not be ignored.
The article points out that in fact, Nike is not a novice in managing currency risk.
It buys the euro, sterling and yen futures contracts under the instructions of the securities and Exchange Commission in order to avoid currency risks.
< /p >
P, CEO of Nike, will use operational and financial leverage to deal with macroeconomic challenges.
However, as the article said, despite the many measures taken, Nike's performance in Japan still slipped.
Nike's leverage power is still inferior to that of Andouble's economics.
< /p >
< p > article thinks that for any retailing enterprise, easing the impact of exchange rate change is as important as keeping close supply chain, catching up with the trend of the world and grasping the latest technology.
As Japan's loose monetary policy is in full swing, the world's major retail brands are unable to get their bearings. Their performance in Japan has been affected by the depreciation of the Japanese yen.
Nike's positive measures to deal with monetary risks are not effective, which means that dealing with exchange rate shocks has become a real problem.
< /p >
- Related reading
XTEP Guangdong Sports Bureau Two Floor Conference Room Held A News Conference
|- City Express | Deep Foundation: Deputy Secretary Of The Municipal Party Committee And Mayor Chang Shuming In Samsung Clothing Research
- News Republic | Samsung Garment As A Practical Training Base For College Students, Does Not Forget To Take The Initiative To Provide Internship Opportunities For Graduates.
- brand building | Remember The Mission Of Jinzhong City People'S Congress To The Samsung Garment Expansion Project Base Research
- Dress culture | Non Heritage Culture: General Tiger Appeared In The 2019 "ABC Cup", The First Jinzhong City Vocational Skills Competition.
- Dress culture | The Inheritance And Development Of The Handicraft Skills Of The Heritage Culture "General Tiger" Won The Entrepreneurial Award.
- Company news | Devotees Of The Great Parade: Shanxi Bing Juan Garment Co., Ltd. Successfully Completed The National Day Military Parade Production Task.
- Fashion brand | G-SHOCK (CASIO) X CONVERSE TOKYO New Joint List Will Be Landed Next Month.
- Fashion brand | Chao Card 424 X Arsenal (A Senna) Joint Gentlemen Clothing Series Released
- Fabric accessories | Leading The New Trend Of Wool Industry, The Eighteenth "Weaving Trade Fair" Will Be Held In November.
- Fashion blog | The Main Trend Of Autumn And Winter Is Western-Style Clothes, Loose Trousers, Big Shoulder Suits And Retro Costumes.
- OL Smart Business Suits Are Very Charming.
- Fresh And Refined Temperament, Summer Wear Super Age Reduction
- Adidas Brings The Atmosphere Of Beijing Fans Meeting To The Highest Point.
- Assembling Summer Beauty With Beautiful Image And Super Absorbing Eye
- Amoy Brand Han Du Yi House Has A Simple Network Brand To Expand Channels.
- 2014 Spring And Summer Men'S Week Interpretation Of The New Trend Of Men'S Wear
- 2013 Fur Leather Expo, Guangzhou, China, EDGE Fur Night (Four)
- Nike'S New Market Performance In China Is Not Good Enough.
- Cool Girl Street Show Shows Great Beauty.
- K11 Shopping Center Will Trigger Retail Reform