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John Donahoe, CEO of Nike, made a passionate defense of his company’s business in China after the world’s largest sportswear brand entered Xinjiang as a result of past statements in consumer reactions.
“Nike is a Chinese and Chinese brand,” Donaho said Thursday in response to a question from an analyst about competition from other brands in the region.
In March, the Chinese state media circulate a document issued by Nike last month, which expressed concern about reporting forced labor in Xinjiang. The Uighurs are over 1m long they were arrested of course in the western region, which produces more than four-fifths of China’s cotton.
The reappearance of Nike’s statement sparked criticism from celebrities including pop star and then-brand ambassador Wang Yibo, who said he would cut ties with creative sportswear. A statement It says on Nike’s website that it has no products or supplies in the region.
Shares of Chinese athletics brands competing with Nike in the region, including Li Ning and Anta Sports. rose at first among the reaction against western brands in early April, among others Swedish fast fashion chain H&M.
In economic results released on Thursday, Nike reported sales of $ 1.9 billion in larger China in the three months ended May 31, up 17 percent from the same period in 2020.
For the company as a whole, revenue doubled to $ 12.3 billion in the quarter, contributing $ 1.5 billion in profits. $ 709 million loss at least a year before the pandemic. Shares of Nike rose 14 percent in post-New York time trading.
The success of the Donahoe company has been attributed in part to decades of investment. “We’ve been in China for 40 years,” said Phil Knight, a former founder and CEO of Nike.
Donaho, who took over management in January 2020, spent the first days of his tenure visiting Nike’s operations in China. According to him, the company’s “biggest asset is consumer equity[in the brand]. . . it’s real, I saw it at work the first week ”.
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