(Washington) Nike released mixed quarterly results on Thursday, with sales at half mast in the United States due to congestion at U.S. ports, which resulted in inventory lockdowns, while stores faced temporary closures in Europe.
Posted on March 18, 2021 at 5:35 p.m.
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Sports equipment sales rose 3% in the third quarter ending in late February, to $ 10.35 billion. But it is less than the 11.02 billion expected by analysts.
“The third quarter revenue performance was affected by the disruptions related to the COVID-19 pandemic, particularly in North America and in the Europe, Middle East, Africa region,” the group commented in a statement.
Revenues in North America fell by 10%, “largely due to global container shortages and congestion at US ports, which have delayed the flow of stocks. […] more than three weeks, ”he added.
In the area, Europe, Middle East and Africa, revenues fell by 4% while the pandemic in Europe, which is still not under control, has forced stores to close.
In contrast, revenues rose 51% in China.
If sales are disappointing overall, the group posted a sharp increase in net profit, to nearly 1.45 billion dollars against 847 million a year earlier, an increase of 71%.
Earnings per share, a benchmark value in the United States, rose to 90 cents against 53 cents in the third quarter of 2020. This is much higher than the expectations of analysts who expected 59 cents.
The group remains confident for the future.
“The dynamics of the Nike brand is stronger than ever,” responded Matt Friend, executive vice president and chief financial officer of Nike in the press release.
The comma brand can especially count on the strong growth online sales in China.
For now, investors have retained mixed results and Nike’s stock price lost 2.57% in electronic trading following the close of the stock market.
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