Nike Logs $1.3 Billion Profit, But Supply Chain Issues Persist – WWD

Nike Inc. continue to generate returns on the portfolio, even if supply chain problems persist.

Sports based on Beaverton, Ore. garment and accessory companies, including Jordan and reverse brand, disclosed quarterly income Monday after the market closes, improving upper and lower returns on the strength of reverse brand and Nike Inc.’s digital businesses. As a result, the company’s stock rose about 3% in after-hours trading.

John Donahoe, Nike president and chief executive officer, said in a statement: “Nike’s strong results this quarter provide further evidence that our strategy is working, as we performed through a dynamic environment. “We are in a much stronger competitive position today than we were 18 months ago. And I want to thank our approximately 75,000 global teammates for all their work to provide consumers with new products, innovation, and immersive experiences that only Nike can deliver.”

In the three-month period ended November 30, the company’s total revenue grew 1% to $11.3 billion, up from $11.2 billion at the same time last year. Nike brand revenue was flat, at about $10.8 billion, as wholesale sales fell and shipping delays continued due to the pandemic. But Nike’s direct-to-consumer sales helped offset the loss, growing 9% in the quarter to $4.7 billion, while Nike brand digital sales rose 12%, leading The first is growth of 40% in North America. The Converse brand also acted as a headwind during the quarter, with brand revenue growing 16% on a currency-neutral basis to $557 million, led by strong performance across all channels. in Europe and North America.

The company made $1.3 billion in profit as a result, compared with $1.25 billion last year.

Nike did not provide updated guidance, but Matt Friend, the company’s executive vice president and chief financial officer, said in a statement: “Our second-quarter results reflect our deep relationship. with consumers, the continued strength of brands and strong market demand. As we overcome our short-term supply challenges, we are focused on executing the Accelerated Direct to Consumer strategy to boost our long-term financial outlook. ”

In September, Nike said it expected full-year revenue to grow at a moderate rate.

The company added in a statement on Monday that lower inventory levels and pandemic-related factory closures in Greater China and the Asia Pacific and Latin America regions, leading to a drop in revenue. But add that growth in North America, Europe, the Middle East and Africa helped make up the loss.

Additionally, operating expenses increased during the quarter, up 8% to $2.7 billion, driven by additional investment in technology and wage increases. Nike ended the quarter with $9.4 billion in long-term debt and $10.7 billion in cash and cash equivalents.

Shares of Nike, which closed down 2.64% Monday to $157.10, are up about 9% year over year.

https://wwd.com/business-news/financial/nike-earnings-supply-chain-issues-1235021618/ Nike Logs $1.3 Billion Profit, But Supply Chain Issues Persist – WWD

Linh

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