Nike beats revenue estimates with North American sales boost
Nike beat quarterly revenue and profits estimates today after strong Christmas demand in North America helped it recover from supply chain strains in China.
The sportswear giant reported a rise in revenues of five per cent to $10.87bn in the last quarter, beating analysts’ estimates of $10.59bn, according to data from Refinitiv.
Sales for the group hit $4.6bn, up 15 per cent on a reported basis, driven by a surge in North American sales which jumped nine per cent in the third quarter of the year.
But the firm said that revenues in China slumped eight per cent as factory closures in Vietnam took their toll on output and forced the firm to prioritise goods to the main North American market.
Boss John Donahoe said the results showed the firm’s strategy was paying off.
“Fueled by deep consumer connections, compelling product innovation and an expanding digital advantage, we have the right playbook to navigate volatility and create value through our relentless drive to serve the future of sport,” he said.
Shares in the firm, which have fallen by nearly 22 per cent this year, jumped 4.9 per cent in extended trading.
On an adjusted basis, the company earned 87 cents per share, beating estimates of 71 cents per share.