a) North America represents the biggest market for Nike Air Max , accounting for ~40% of its revenues. The company is the market leader in the North American athletic footwear market, with nearly 60% market share. Moreover, sales in the footwear category are driven by the basketball category, which has higher margins than other footwear categories. Nike’s strong footwear performance is based on using endorsements by iconic figures such as Michael Jordan and Kobe Bryant to sell its products. New endorsement deals, such as those with Lebron James and Kevin Durant, should help Nike retain the same strength over the coming quarters. Additionally, the strength of the company’s growing Direct-to-Consumer business should ensure that sales in this region remain solid.

b) Emerging markets (excluding China) revenue grew by 19% on a currency neutral basis, in the previous quarter. The high growth was also a result of the pent-up demand caused by supply chain issues faced by the company in Mexico in the second quarter. Emerging markets provide long term growth opportunity for Nike, and the company will leverage international sporting events such as the FIFA World Cup and Olympics in Brazil to drive its future sales.

With growing economic prosperity in the region, Central & Eastern Europe represents another fast growing market for Nike. Not only did the company’s sales jump 22% in the third quarter, the futures orders also stood at a promising 13% (in constant currency terms) at the end of Q3. Therefore, we believe this region will continue to be a strong growth driver for Cheap Nike Air Max in the near future.

c) China is expected to hold the key to Nike’s future growth, owing to its large population and a fast growing economy. However, Nike’s Chinese sales have been hit in the recent past due to ineffective brand positioning, which led to a long drawn process of clearing out excess inventory by offering discounts. The company is actively addressing this situation by focusing its assortment with a greater level of precision on sports and products that are most preferred by Chinese consumers.

Nike has also setup new distribution centers and increased its marketing capacity in the region. The sales figure in the face of this restructuring process will be a key indicator of Nike Air Max UK health in China. In an encouraging sign, Nike’s revenues from the Greater China rose 7% in Q3. However, the trajectory of growth in sales from Greater China is unlikely to be linear, as shown by a 3% decline in reported future orders for the quarter.