Nike, Inc reported quarterly results that were better than had been expected, as demand for footwear and apparel increased in Western Europe and North America. This came after big expenditures in marketing prior to the start of the 2014 World Cup.
Shares of the largest maker of sportswear in the world were up by 3.2% to reach $79.37 during extended trading.
Nike, which is known and recognized worldwide for its tick or distinctive swoosh logo, receives over half of its full revenue from Western Europe and North America.
North American revenue was up by 10% during the quarter that ended on May 31, while Western Europe revenue spiked by 18% excluding the currency fluctuation impact.
Trevor Edwards the Brand President for Nike said the company had the No. 1 brand in each of the top 10 Western European cities.
The company has given tough competition to Adidas AG from Germany in the European region, which is hugely competitive.
Nike has put a number of trend right products in the marketplace making it in high demand, said one analyst.
Nike was able to maintain its sportswear market share in Western Europe, which was 12% during 2013, while the market share for Adidas dropped from 13.2% to 12.6%, according to a European monitoring company.
The World Cup, which is being played now in Brazil, marks Nike’s first time sponsoring more of the 32 national teams than does Adidas.
Nike was able to sign soccer legends Wayne Rooney, Eden Hazard, Neymar and Cristiano Ronaldo to appear in commercials promoting its products leading up to the most popular sports event in the world.
Nike said its expenses for marketing increased 36% during the quarter, mostly because of expenditures directly related to the World Cup.
During the ongoing quarter, marketing expenses should rise by 30% as the company attempts to grab the attention of the millions of soccer fans, said one company executive.
Between the months of March and May, Nike launched new shoes such as Magista Obra, Mercurial Superfly, the World Cup Boot 2014, the Tiempo Legend V and the 2014 World Cup Boot.
Ronaldo was named the world’s best soccer player after winning the Ballon d’Or.
Nike announced that more players are wearing Nike brand shoes in the World Cup than all other brands combined.
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