Solid sales for Nike in the US and Europe helped offset the challenges associated with the pandemic in China and the Asia-Pacific region during the second quarter and supported the expected better result for the sportswear maker.
Nike said Monday it continued to manage the impact of supply chain disruptions across the market, but CEO John Donahoe said the company was, in general, “today in a much stronger competitive position than we were 18 months ago.”
These supply chain disruptions were most pronounced in Asia, with the US-based company reporting revenue in China and the Asia-Pacific and Latin America regions declining “mainly due to lower levels of available inventories resulting from the closure of Covid-related factories. -19 “.
While those closures had detrimental effects on the company’s overall portfolio, management said North America and Europe, the Middle East and Africa experienced growth due to “higher levels of inventories in transit entering the second quarter”.
Three months ago, Nike spoke of “stable normalization” of physical retail as pandemic-era constraints eased, but that was before the latest wave of measures a growing number of countries have taken in recent weeks to stop the spread of Omicron coronavirus.
Overall, Nike reported revenue of nearly $ 11.36 billion in the three months ended Nov. 30. That was 1 percent more than a year earlier, not taking into account currency fluctuations, but about $ 100 million more than what analysts predict in the Refinitive survey.
Net income of $ 1.34 billion, 7 percent more than a year ago, exceeded the Wall Street average forecast of $ 1.01 billion.
Sales on Nike’s direct channel to consumers rose 8 percent from a year earlier during the second quarter. This was led by North America, where the company said it made record sales for Nike Direct during Black Friday week around the American Thanksgiving holiday.
Nike shares rose 4.8 percent in after-hours trading on Monday.