Nike caught up with logistical problems that inflate its costs

New York (awp/afp) – US sporting goods giant Nike unveiled better-than-expected quarterly results on Thursday, but its margins are eroded by logistics costs, promotional operations to reduce inventory and currency effects .

The company’s revenue is on the rise again, rising 4% from June to August, the period corresponding to its first accounting quarter, to reach 12.7 billion dollars, more than the 12.27 billion expected.

If currency effects were not taken into account, sales would be up 10%.

The group’s net profit for its part fell by 22% to 1.5 billion dollars.

On a per share basis and excluding special items, the preferred measure of Wall Street investors, earnings came in at 93 cents, just above the 92 cents expected by analysts.

The action fell despite everything by nearly 5% in electronic trading just after the publication of these results.

The group’s gross margin fell, suffering in particular from “high freight and logistics expenses” and generally unfavorable exchange rates, explains Nike.

The company also had to reduce prices on certain products that it sells directly in its own stores or online, in North America in particular to sell off its stocks.

Nike has indeed seen its inventories jump 44% compared to the same period in 2021. Demand for its products remains “solid”, says the group. But shipments are slow to arrive due to ongoing difficulties in the supply chain.

At the same time, the company saw its marketing and administrative expenses increase by 10%, with in particular an increase in salary expenses and strategic investments in technologies.


Source link -88