Nike beats revenue estimates on North America demand By Reuters

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© Reuters. FILE PHOTO: The Nike swoosh brand is seen exterior the shop on fifth Avenue in New York, New York, U.S., March 19, 2019. REUTERS/Carlo Allegri/File Photo

By Uday Sampath Kumar

(Reuters) -Nike Inc beat quarterly revenue and revenue estimates on Monday, lifted by robust demand for its sports activities footwear and attire in North America, and stated it was extra assured of easing provide chain points in its subsequent fiscal 12 months.

The firm’s shares rose 3.7% in prolonged buying and selling.

Nike (NYSE:)’s second-quarter gross sales in North America, its largest market, jumped 12%, as a reopening U.S. financial system and the roll out of vaccines gave individuals confidence to hurry again to shops and splurge on sneakers for operating and climbing.

“Nike is doing well to get in as much inventory as possible. Long term, I don’t see the momentum going away from the company because the products are so highly coveted by consumers,” stated Jessica Ramirez, retail analyst at Jane Hali & Associates.

The sportswear maker stated its direct-to-consumer enterprise had document Black Friday gross sales in North America regardless of provide constraints heading into the vacation season as a consequence of months-long manufacturing facility closures in Vietnam, the place about half of all Nike footwear is manufactured.

However, these provide points and recent COVID-19 lockdowns led to a 20% fall in Nike’s revenue in Greater China within the second quarter.

Nike stated weekly footwear and attire manufacturing was at roughly 80% of pre-closure volumes at its now absolutely open factories in Vietnam.

The closures triggered Nike to cancel manufacturing of roughly 130 million items, Chief Financial Officer Matt Friend stated.

The firm’s general revenue rose 1% to $11.36 billion within the second quarter, beating estimates of $11.25 billion, based on IBES knowledge from Refinitiv. The firm expects a low single-digit rise in third-quarter revenue in comparison with estimates of a 2.5% enhance.

Nike’s revenue of 83 cents per share beat estimates of 63 cents.

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