CONVERSE's Performance Has Grown To Become Nike's Money Making Weapon.

The industry generally believes that it is now necessary to re-examine the CONVERSE which was once marginalized by Nike. This brand known for canvas shoes has become a secret of Nike. make money Weapons. In 2005, after being acquired by Adidas, Reebok, which was once in a bad position, has also been successfully revival, becoming Adidas's weapon of choice.

According to the latest quarterly earnings report released by Nike, Nike's revenue grew by 13% over the same period last year. Nike Brand revenue grew by 11% over the same period last year. Obviously, the overall growth rate of Nike is faster than that of Nike brand, and the reason for this difference is CONVERSE.

Meanwhile, Adidas Group first quarter sales also recorded an expected growth of 17.3%, and its brand Reebok Reebok grew sharply from 0.6% in the four quarter to 9%. The North American market benefited more from the recovery of the Reebok Reebok brand, which recorded an increase of 7% in the first quarter.

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In the three months ending March 28th, group net profit fell 19% to 124 million, or earnings per share of $1.41, a net profit of $153 million last year and a 1.68 US dollar earnings per share. Net revenue rose $1% to $1 billion 890 million from $1 billion 870 million, of which net sales rose 1.1% to $1 billion 850 million, thanks to early Easter sales of wholesale business rose 2.4% to $1 billion; retail net sales were essentially flat at $841 million. All the results were higher than those expected by Wall Street analysts, who had expected earnings of $1.32 a share and $1 billion 880 million a share.

For the 2015 fiscal year ended March 28th, net profit fell 9.5% to $702 million, or earnings per share of $7.88, and net revenue increased 2.3% to 7 billion 620 million US dollars. The company said that all categories of prices have been upgraded to offset foreign exchange risk and that the median net income growth in 2016 is expected to be in a constant currency.

Ralph Lauren, chairman and chief executive officer, said that the company has set up several stores in major markets all over the world. "The launch of Drawstring Ricky handbags enhances the momentum of our luxury accessories business." Nemerov believes that the clothing category is still doing well, whether Collection, Polo or Lauren by Ralph Lauren product line has a good performance.

Ralph Lauren Corp. started a new restructuring plan last month, but this time it is aimed at further transforming its brand sector structure into a new business model. The first move is to upgrade CFO and executive vice president Christopher H. Peterson to the global brand president. It is clear that when transforming to the new global brand management structure, the company's brand will be the six brand group: the luxury brand Ralph Lauren under the supervision of the Valerie Hermann, excluding home series; Polo; Denim & Supply; Polo;

In addition, the Ralph Lauren Black Label series will be unified to Purple Label and Ralph Lauren Collection respectively. The CEO and chief operating officer Jackwyn Nemerov pointed out that although the Collection will not appear again, the products will be widely added to the price range of layering, and exist in the two tags. She explained that this change is feasible, because consumers expressed confusion in the feedback, that the two brands are labeled as "luxury" product line, it is difficult to distinguish their differences. And now merged into one, both men's Purple Label or women's wear Collection only allow a single brand information.

For the idea behind structural reform, Peterson said that this is to help reduce inventories worldwide and take into account the "universal commodity classification" around the world. He pointed out that "in the past, we managed to separate regions and channels separately, and had different goods in different stores. But changing to similar commodity classification will increase brand consistency and promote brand value.