ONLINE SALES PUSH NIKE TO NOTCH $1.5B PROFIT IN THIRD QUARTER
Nike appears to have recovered from its pandemic slump, posting a solid quarterly profit driven by soaring online sales of its sneakers and workout apparel, the Associated Press (AP) reported.
The world’s largest sports apparel maker on Tuesday reported a net profit of $1.5 billion profit, or 95 cents per share, in the three-month period ending Aug. 31, up 11% from the same 2019 quarter. That was well ahead of Wall Street analysts’ expectations of 47 cents a share, according to FactSet. Nike’s stock surged 13% in after-hours trading following the release of the results.
In previous quarter that ended May 31, the Beaverton, Oregon-based company reported an unexpected loss, with its revenue falling 38% after digital sales failed to make up for losses in physical stores shuttered to combat the spread of the coronavirus. Nike has stepped up its direct-to-consumer online strategy amid the pandemic, leveraging its workout app to drive digital sales. Online sales now make up at least 30% of its revenue, a goal the company had set for 2023.
In the latest quarter, Nike’s digital sales rose 82%, helping offset declines in its wholesale business and Nike-owned stores. Revenue in the fiscal first quarter held steady at $10.6 billion, a 1% decline from the previous year. Sales in China rose 6% while North America sales fell 2%. Analysts had expected revenue of $9.2 billion.
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