A man walks in front of an exhibition of Nike products on February 22, 2021, in New York City.
John Smith | Corbis News | Getty Images
Nike reported quarterly sales on Thursday that missed target as widespread port congestion in the US and ongoing store closures in Europe linked to the pandemic weighed on the results.
The retailer has not yet provided forecasts for the full year.
Its shares fell nearly 2% during out-of-hours trading.
Here’s how Nike fared during the quarter ended Feb. 28, compared to what analysts expected, based on a survey by Refinitiv:
- Earnings per share: 90 cents versus 76 cents expected
- Revenue: $ 10.36 billion vs. $ 11.02 billion expected
Nike reported net income of $ 1.45 billion, or 90 cents a share, compared to $ 847 million or 53 cents a share a year earlier. That was better than the 76 cents a share analysts had expected, based on Refinitiv data.
Total sales increased from $ 10.1 billion a year earlier to $ 10.36 billion. That was lower than the analyst predicted $ 11.02 billion.
In North America, sales were down 10% year over year, hurt by shipping delays that Nike said have been going on for more than three weeks. That also meant that sales at its wholesale partners were affected.
In the Europe, Middle East and Africa region, Nike said sales in its brick-and-mortar stores fell due to pandemic-related closures and restrictions, while digital sales in those markets grew 60%. It said about 60% of its stores in the region are open today, some of which operate on shortened hours.
Nike’s direct-to-consumer business grew 20% year over year to $ 4 billion. And online sales of the Nike brand were up 59% as consumers wanted to add new sneakers and athletic gear to their wardrobe.
Nike shares are up more than 110% in the past 12 months, as of Thursday’s market close. It has a market capitalization of more than $ 225 billion.
Find the full Nike press release here.
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