https://www.oann.com/nike-sales-beat-estimates-as-north-america-sneaker-demand-jumps/?utm_source=rss&utm_medium=rss&utm_campaign=nike-sales-beat-estimates-as-north-america-sneaker-demand-jumps

FILE PHOTO: A man wearing a protective face mask walks past a Nike brand store in Kyiv, Ukraine December 10, 2020. REUTERS/Valentyn Ogirenko/File Photo

March 21, 2022

(Reuters) -Nike Inc beat quarterly revenue and profit estimates on Monday on robust holiday demand for its sports shoes and apparel in North America, even as supply issues dented sales in China.

Shares of the world’s biggest sportswear maker, which have fallen nearly 22% this year, rose 4.9% to $136.52 in extended trading.

Sports and casual apparel have become a more intrinsic part of everyday fashion since the onset of the pandemic, as people ditch office attire for sweatpants and joggers, boosting sales at Nike and rivals such as Under Armour and Adidas.

Nike’s sales in North America, its largest market, jumped 9% in the company’s third quarter, also boosted by the return of school sports and price increases.

However, revenue in Greater China fell 8% in the quarter, as last year’s factory closures in Vietnam, where about half of all Nike footwear is manufactured, forced the company to prioritize sending supplies to North America over the Chinese market.

A surge in COVID-19 cases and fresh lockdowns in major Chinese cities in the last few weeks are likely to further pressure sales, analysts have said.

Nike’s revenue rose 5% to $10.87 billion in the quarter ended Feb. 28, while analysts had expected $10.59 billion, according to IBES data from Refinitiv.

On an adjusted basis, the company earned 87 cents per share, beating estimates of 71 cents per share.

(Reporting by Uday Sampath in Bengaluru; Editing by Shounak Dasgupta)

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