Sign up to create alerts for Instruments,
Economic Events and content by followed authors
Free Sign Up Already have an account? Sign In
Quotes
All Instrument Types
- All Instrument Types
- Indices
- Equities
- ETFs
- Funds
- Commodities
- Currencies
- Crypto
- Bonds
- Certificates
Please try another search
Final hours: unlock premium data with Claim 60% OFF
Nike Gains as U.S. Growth Cushions China Setback
Published Dec 21, 2021 04:38AM ET
© Reuters.
By Dhirendra Tripathi
Investing.com – Nike stock (NYSE:NKE) traded 3.7% higher in Tuesday’s premarket as reopening in U.S. got people to buy more of its shoes and apparel in the three months through November.
Sales in North America, Nike’s largest market, rose 12% year-on-year, offsetting a 20% slump in the company’s sales in China. A jump in direct sales also helped the company overcome reverses in the world’s second-largest economy, growing 9% to $4.7 billion.
Sales in China suffered as its suppliers’ factories in Vietnam, a key manufacturing base, were shut for long periods due to the pandemic.
The company told analysts in a conference call that Vietnam factory closures led it to cancel production of roughly 130 million units. All factories are now operational and weekly footwear and apparel production has reached roughly 80% of pre-closure volumes, Nike said.
Robust demand, strength in online sales and supply chain issues all reduced the need for discounting, something that helped Nike grow its margins. Gross margin rose 2.8 percentage points to near 46%.
Second-quarter revenue rose 1% to $11.4 billion. Adjusted profit per share rose 6% to 83 cents and comfortably beat estimates.
Nike repeated its forecast of around 5% sales growth in the year through May, despite ongoing supply chain disruptions due to Vietnam factory closures that will affect current-quarter sales. Sales in the fiscal third quarter are expected to grow by less than 5%, while the improvement in margins is also set to weaken to 1.5 percentage points in year-on-year terms.
Related Articles
Add Chart to Comment
Confirm Block
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.
Report this comment
I feel that this comment is:
Comment flagged
Thank You!
Your report has been sent to our moderators for review
Add a Comment
We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.