FILE PHOTO: The Nike swoosh logo is seen outside the store on 5th Avenue in New York, New York, U.S., March 19, 2019. REUTERS/Carlo Allegri/File Photo
December 20, 2021
(Reuters) -Nike Inc beat estimates for quarterly revenue on Monday, lifted by strong demand for its sports shoes and apparel in North America even as shipping hurdles and factory closures pinched supplies.
The company’s shares rose nearly 3% in extended trading.
Nike’s sales in North America, its largest market, jumped 12% in the company’s second quarter, as a reopening U.S. economy and the roll out of vaccines gave people confidence to rush back to stores and splurge on sneakers for running and hiking.
“Nike is doing well to get in as much inventory as possible. Long term, I don’t see the momentum going away from the company because the products are so highly coveted by consumers,” said Jessica Ramirez, retail analyst at Jane Hali & Associates.
The sportswear maker said its direct-to-consumer business had record Black Friday sales in North America despite supply constraints heading into the holiday season due to months-long factory closures in Vietnam, where about half of all Nike footwear is manufactured.
However, those supply issues had a bigger dent in Greater China, where Nike’s revenue fell 20%.
The company’s overall revenue rose 1% to $11.36 billion in the quarter ended Nov. 30, while analysts on average had expected $11.25 billion, according to IBES data from Refinitiv.
Nike’s net income rose 7% to $1.34 billion, or 83 cents per share, beating estimates of 63 cents per share.
(Reporting by Uday Sampath in Bengaluru; Editing by Maju Samuel)
Source: One America News Network
