A man walks in front of an exhibition of Nike products, on February 22, 2021 in New York City.
John Smith | Corbis News | Getty Images
Nike on Thursday reported quarterly sales that lost the mark, as widespread port congestion in the U.S. and ongoing pandemic store closures in Europe weighed on the results.
The retailer has not yet offered prospects for the full year.
Its shares fell nearly 2% in out-of-hours trading.
Here’s how Nike did during the quarter ended Feb. 28, compared to what analysts expected, according to a Refinitiv survey:
- Earnings per share: 90 cents vs. expected 76 cents waiting
- Revenue: $ 10.36 billion vs. $ 11.02 billion projected
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. It was better than the 76 cents per share analysts expected, according to Refinitiv data.
Total sales rose to $ 10.36 billion, up from $ 10.1 billion a year earlier. This was below the $ 11.02 billion forecast by analysts.
In North America, revenue fell 10% year-over-year, hurt by delays in shipments that Nike said have been dragging on for more than three weeks. This also involved sales from its wholesale partners.
In the Europe, Middle East and Africa region, Nike said sales at its physical retail stores fell due to pandemic-related closures and restrictions, while digital sales in those markets grew by 60 percent. %. He said about 60% of his shops in the region are open today, and some operate part-time.
Nike’s direct consumer business grew 20% year-over-year, to $ 4 billion. And Nike brand online sales rose 59% as consumers sought to add sneakers and sports equipment to closets.
Shares of Nike have risen more than 110% in the past twelve months, at the close of the market on Thursday. It has a market capitalization in excess of $ 225 billion.
Find the full Nike press release here.
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