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NEW YORK – Nike appears to have rebounded from its pandemic slide, posting a solid quarterly profit driven by soaring online sales of its sneakers and sportswear.
The world’s largest sportswear maker on Tuesday reported a net profit of $ 1.5 billion in profit, or 95 cents a share, in the three-month period ending Aug. 31, up 11 percent from the year. same quarter of 2019.
That was well above Wall Street analysts’ expectations of 47 cents a share, according to FactSet. Nike’s shares rose 13 percent in after-hours trading after the results were released.
In the previous quarter ending May 31, the Beaverton, Oregon-based company reported an unexpected loss, with its revenue dropping 38 percent after digital sales failed to offset losses at physical stores. closed to combat the spread of the coronavirus.
But analysts had predicted a rebound because Nike has been popular with online shoppers.
In the most recent quarter, Nike’s digital sales rose 82 percent, helping to offset declines in its wholesale business and in Nike-owned stores.
Revenues in the fiscal first quarter were flat at $ 10.6 billion, a decrease of 1 percent from the prior year. Sales in China increased 6 percent, while sales in North America fell 2 percent.
Analysts expected revenue of $ 9.2 billion.
Most of Nike’s stores are now open around the world, but sales continue to be slow due to lower customer traffic and security measures related to Covid-19, the company said. Shipping costs and promotions aimed at reducing inventory continued to eat up margins, but order cancellations decreased.
Nike has stepped up its direct-to-consumer strategy amid the pandemic, leveraging its training app to drive digital sales. Online sales now account for at least 30 percent of its revenue, a target the company had set for 2023.
