Nike posted revenue of $10.4 billion for its latest quarter.
Drew Angerer/Getty ImagesNike stock notched minor losses after hours on Thursday, after the athletic giant posted fiscal-third quarter sales that came in just shy of expectations.
Nike (ticker: KE) said it earned $1.4 billion, or 90 cents a share, on revenue that rose 3% year over year to $10.4 billion. Analysts were looking for per-share earnings of 76 cents on revenue of $11 billion.
Nike was down 0.5% to $142.53 in recent trading.
Nike’s earnings report was hotly anticipated, with a number of analysts raising their estimates in the days leading up to it. In that sense, the top-line miss may be a letdown for some investors, although more granular sales data was more hopeful.
Digital sales for the Nike brand surged 59% in the quarter, with its online business recording double-digit increases in all geographic regions. Nike Direct sales—part of the company’s efforts to sell to consumers rather than third-party retailers—climbed 20% to $4 billion. Sales in greater China jumped 51%.
The company said that gross margin increased 130 basis points in the period ended Feb. 28. Fixed costs declined 7% to $3 billion.
Still, those hoping for a swifter turnaround in its key North America market were likely disappointed to see a 10% decline in revenue there. North America online growth also cooled from triple digits in the prior quarter. Nike blamed supply chain issues—telegraphed ahead of the report—such as shipping delays and port congestion. Similar issues weighed on sales in Europe, the Middle East, and Africa, a region that is also enduring continued bricks-and-mortar store closures.
Nike stock is up just over 1% year to date, after notching gains of 103.5% in the past 12 months.
Write to Teresa Rivas at teresa.rivas@barrons.com
March 19, 2021 at 04:58AM
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Nike Stock Slips on Its Mixed Earnings Report - Barron's
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