Despite weak China business
Nike increases sales sharply
03/21/2022, 11:08 p.m
Nike’s results for the third fiscal quarter surprised the analysts. The sporting goods manufacturer was apparently able to compensate for the corona-related slump in the Chinese market with deliveries in North America.
Nike beat analysts’ expectations for sales and earnings in its third fiscal quarter, buoyed by a strong holiday business in North America. Sales for the quarter ended February rose 9 percent in Adidas’ competitor’s largest market. In contrast, China fell by eight percent, as the US group announced on Monday after the market closed.
In view of factory closures in Vietnam last year, Nike gave priority to the North American business over the Chinese market for deliveries. Total sales rose five percent to nearly $10.9 billion. 10.6 billion had been expected.
Net profit fell four percent to almost $1.4 billion. The company earned 87 cents per share, beating forecasts of 71 cents. Nike shares initially rose 4.9 percent in after-hours trading.