(Yicai) Dec. 22 -- Nike’s sales gained for the fifth consecutive quarter in China thanks to the recovery in the market for sports goods after the Covid-19 pandemic.

The US sportswear giant's sales in the country climbed 4 percent to USD1.9 billion in the three months ended Nov. 30, and reached 8 percent growth when foreign exchange factors are disregarded, it said in a fiscal second-quarter earnings report yesterday. Pre-tax profit rose 1 percent to USD514 million.

“The fact is we feel very good about our position in China and our ability to compete, and that has not changed from 90 days ago,” Nike Chief Executive John Donahoe said on an earnings conference call. The Oregon-based company is confident about the Chinese market, he added.

“The China consumer is back out on the street with a real focus on active and healthy lifestyles,” Donahoe said. “You see the government encouraging sport and healthy lifestyles, and Gen Z is the most active generation ever,” he noted, adding that big sports events such as the Shanghai Marathon helped the brand to connect with local consumers.

Nike entered the Chinese market in the late 1970s and early 1980s and has expanded its presence across major cities to become one of the leading sportswear brands in the country.

The company's global net profit jumped 19 percent to USD1.6 billion in the quarter, while revenue rose 1 percent to USD13.4 billion. But Nike cut its annual revenue growth forecast for the fiscal year 2024 to “approximately 1 percent,” down from mid-single-digit growth.

Nike also said it plans to cut costs by as much as USD2 billion over the next three years. “Areas of potential savings include simplifying our product portfolio, increasing automation and the use of technology, streamlining our organization, and leveraging our scale to drive greater efficiency," Donahoe pointed out.

Editor: Martin Kadiev