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Solid sales for Nike in the US and Europe helped offset pandemic-related challenges in China and Asia Pacific in the second quarter and underpinned forecasts for the apparel maker. this sports shirt.
On Monday, Nike said it continues to manage the impact of supply chain disruptions in the marketplace, but chief executive John Donahoe said overall, the company “is in a much stronger competitive position. compared to 18 months ago”.
Those supply chain disruptions were most noticeable in Asia, with the US-based company reporting a drop in revenue in China and the Asia-Pacific and Latin America regions “largely due to volume loss”. lower available inventory due to Covid-19 related factory closures.”
While these closures had a negative impact on the company’s entire portfolio, management said North America and Europe, the Middle East and Africa saw growth due to “overcrowding of inventories. higher situation in Q2”.
Three months ago, Nike talked about a “stable normalization” of physical retail as pandemic restrictions are eased, but this was before the latest wave of measures that more and more countries are taking. has taken in recent weeks to prevent the spread of the Omicron variant of the coronavirus.
Overall, Nike reported nearly $11.36 billion in revenue for the three months ended Nov. 30. That’s up 1% from a year ago, excluding currency fluctuations, but far ahead. about $100 million more than analysts forecast in a Refinitiv survey.
Net income of $1.34 billion, up 7% from a year ago, topped Wall Street’s median forecast of $1.01 billion.
Nike’s direct-to-consumer sales grew 8% year-over-year in the second quarter. That was led by North America, where the company said it hit record sales for Nike Direct during the week of Black Friday around the US Thanksgiving holiday.
Shares of Nike were up 4.8% in after-hours trading on Monday.