A man walks in front of an exhibition of Nike products, on February 22, 2021 in New York.
John Smith | Corbis News | Getty Images
Nike reported failed quarterly sales on Thursday as large-scale congestion in US ports and ongoing pandemic store closures in Europe influenced the results.
The retailer has not yet offered a perspective for the whole year.
Its shares fell by almost 2% when trading after the program.
Here is how Nike did in the quarter ended February 28, compared to what analysts expected, based on a survey conducted by Refinitiv:
- Earnings per share: 90 cents compared to the expected 76 cents
- Revenue: $ 10.36 billion compared to $ 11.02 billion expected
Nike reported net income of $ 1.45 billion, or 90 cents a share, compared to $ 847 million, or 53 cents a share, a year earlier. This was better than the 76 cents per share that analysts expected, based on Refinitive data.
Total sales rose to $ 10.36 billion from $ 10.1 billion a year earlier. This was lower than analysts’ $ 11.02 billion forecast.
In North America, revenue fell 10 percent year-over-year, affected by delivery delays that Nike said had been improving for more than three weeks. This also meant sales from its wholesale partners.
In its Europe, Middle East and Africa region, Nike said sales at its physical retail stores fell due to pandemic closures and restrictions, while digital sales in these markets increased by 60%. According to him, about 60% of its stores in the region are open today, and some operate on a part-time basis.
Nike’s direct consumer business has grown 20 percent year-over-year to $ 4 billion. And online sales for the Nike brand rose 59% as consumers sought to add new sneakers and sports equipment to their closets.
Nike shares have risen more than 110% in the past 12 months since the market closed on Thursday. It has a market capitalization of over 225 billion dollars.
Find the full Nike press release here.
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