The new manufacturing process will include automated knitting techniques used in the production of the new footwear product Flyknit. Under its innovative manufacturing process, NIKE, Inc. (NYSE:NKE) is testing 3D printing on the soles of the shoes and is the first company in the footwear industry to bring this kind of innovation to the manufacturing process. Nike is anticipating total revenue of $6.7 billion for the fourth quarter of fiscal year 2013, which was $6 billion last quarter.
The North American and European region contribute 39% and 29%, respectively, to the total sales of sports apparel for NIKE, Inc. (NYSE:NKE), while Asia and Latin America contribute 27% to total sales of sports apparel. Total sales in the North American region rose 18% to $2.55 billion in the second quarter of fiscal year 2013, which was mainly driven by the introduction of Flyknit.
NIKE, Inc. (NYSE:NKE) observed an 4% increase in future orders for the third quarter of fiscal year 2013 in China by introducing new products that are more suitable for the Chinese people. Total future orders of the company, which are expected to be delivered by July 2013, are worth $9.9 billion. Moreover, NIKE, Inc. (NYSE:NKE) is expecting to gain the highest market share in Brazil due to the upcoming Football World Cup in 2014 and Olympics in 2016. The company is expecting a market share of 6.5% in the global sports apparel market, which was worth $135 billion in 2012 and is expected to reach $178 billion by 2019.
Conclusion
Under Armour Inc (NYSE:UA)’s expansion plans and dominance in the market for performance apparel is expected to show growth in sales and higher profit.
Lululemon Athletica inc. (NASDAQ:LULU) is trying to recover from the Black Luon pant issue that, from its plans of expansion, should not not affect its growth in terms of sales. The company’s innovative products and control over the Yoga apparel market assures profit in the upcoming years.
NIKE, Inc. (NYSE:NKE) is emphasizing on increasing its global presence and innovation in its manufacturing process, which will help the company grow in terms of revenue.
Therefore, I recommend buy on all these stocks.
The article 3 Sports Apparel Companies You Should Buy in June originally appeared on Fool.com and is written by Madhu Dube.
Madhu Dube has no position in any stocks mentioned. The Motley Fool recommends Lululemon Athletica, Nike, and Under Armour. The Motley Fool owns shares of Nike and Under Armour. Madhu is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
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