Nike Global Sales Nearly Double to $12.3 Billion In Fourth Quarter

Nike Inc. posted gross sales progress throughout areas final quarter, boosted by file income in North America because the athletic-wear firm tries to maneuver previous pandemic challenges.

• International gross sales nearly doubled to $12.3 billion within the interval ended Might 31, the corporate mentioned Thursday in an announcement. That beat analysts’ expectations.

Key Insights

• Chief Govt Officer John Donahoe is pushing extra direct-to-consumer gross sales as administration radically cuts down on wholesale distribution. That’s led to an increase in gross sales for its Nike Direct division, which spiked 73% within the newest quarter. Margins additionally improved.
• Nike’s gross sales progress in Better China, which had led the corporate’s revival, is beginning to cool off. The income climbed simply 17 p.c — and fewer when excluding forex swings — to $1.93 billion, lacking analysts’ expectations of $2.25 billion. The outcomes could replicate the influence of boycotts of Nike and different manufacturers over company statements on compelled labour associated to cotton manufacturing within the Xinjiang area.

Market Response

• The shares rose 4.7 p.c as of 4:23 p.m. after common buying and selling in New York. Shares had been down 5.6 p.c this yr by means of Thursday’s shut.

By Kim Bhasin