Nike talks about raising its prices
21/03/2011
Executives from the company presented a 5.2% increase in earnings for the third quarter (up to February 28) of its current financial year, but complained of falling margins owing to increases in the cost of raw materials, labour and shipment of goods from manufacturing countries, mostly in Asia, to points of sale.
They said Nike had been raising the prices of specific products for some time, but that it was now talking about across-the-board price increases. Among the raw materials they mentioned specifically were cotton and oil.
Currency changes helped boost sales in China, Japan and emerging markets by nearly 15% to nearly $1.4 billion for the quarter. But the company said currency changes were also responsible for sales in Europe falling by 2%. Sales in North America were up by 9% to $1.8 billion.
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