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(Reuters) -Nike Inc. surpassed its quarterly earnings estimates on Monday, driven by strong demand for its sports shoes and clothing in North America, despite shipping barriers and plant closures slowing supplies.
The company’s shares rose nearly 3% in extended trading.
Nike (NYSE:) Sales in North America, its largest market, rose 12% in the second quarter of the company as the U.S. economy reopened and the vaccines expanded, giving people confidence to return to stores and throw away running shoes and use sneakers. hiking.
“Nike is doing well to get as much inventory as possible. In the long run, I don’t see the company’s momentum disappearing because the products are highly coveted by consumers,” said Jessica Ramirez, Jane Hali & the company’s retail analyst. Associates.
The sportswear maker said the direct-to-consumer business in North America had a record of Black Friday sales despite holiday supply constraints due to the closure of factories in Vietnam for months, where half of all Nike shoes are manufactured.
However, these supply problems were more pronounced in China, where Nike’s revenue fell by 20%.
The company’s overall revenue rose 1% in the quarter ended Nov. 30 to $ 11.36 billion, while analysts expected it to average $ 11.25 trillion, according to Refinitiv’s IBES data.
Nike’s net income rose 7% to $ 1.34 trillion, or 83 cents per share, exceeding 63 cents per share.
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