A man walks past a display of Nike products on February 22, 2021, in New York City.
John Smith | Corbis News | fake images
Nike reported on Thursday that quarterly sales fell short of the mark as widespread port congestion in the US and ongoing store closures in Europe linked to the pandemic weighed on results.
The retailer has yet to offer a full-year outlook.
Its shares fell nearly 2% in after-hours trading.
Here’s how Nike did during the quarter ending February 28, compared to what analysts expected, according to a Refinitiv survey:
- Earnings per share: 90 cents vs. 76 cents expected
- Revenue: $ 10.36 billion vs. $ 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. That was better than the 76 cents a share analysts had expected, according to Refinitiv data.
Total sales increased to $ 10.36 billion from $ 10.1 billion a year earlier. That was lower than analysts’ $ 11.02 billion forecast.
In North America, revenue fell 10% year-over-year, impacted by shipping delays that Nike says have dragged on for more than three weeks. That also meant that sales at its wholesale partners suffered.
In its Europe, Middle East and Africa region, Nike said sales in its physical retail stores fell due to closures and restrictions related to the pandemic, while digital sales in those markets grew 60%. He said that about 60% of his stores in the region are open today, and some operate short hours.
Nike’s direct-to-consumer business grew 20% year-over-year, to $ 4 billion. And online sales for the Nike brand were up 59% as consumers looked to add new sneakers and sports gear to their wardrobes.
Nike’s shares have risen more than 110% in the past 12 months, as of Thursday’s market close. It has a market capitalization of more than $ 225 billion.
Find Nike’s full press release here.
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