A man walks in front of a Nike exhibit on February 22, 2021 in New York City.
John Smith | Corbis News | Getty Images
Nike reported quarterly sales on Thursday that missed the mark as the wide-spread U.S. port and the continued closure of stores in Europe, coupled with the pandemic, outweighed the results.
The retailer has not yet offered a full-year outlook.
Its shares fell nearly 2% in after-hours trading.
Here’s how Nike performed during the quarter ended February 28, compared to what analysts had expected, based on a survey by Refinitiv:
- Earnings per share: 90 cents versus 76 cents expected
- Revenue: $ 10.36 billion versus $ 11.02 billion expected
Nike had a net income of $ 1.45 billion, or 90 cents a share, compared to $ 847 million, or 53 cents a share, a year earlier. It was better than the 76 cents per share analysts expected, based on Refinitiv data.
Total sales rose to $ 10.36 billion from $ 10.1 billion a year earlier. This was lower than the analysts’ forecast of $ 11.02 billion.
In North America, revenue fell 10% year-on-year, due to delays in shipping, which Nike said had been dragging on for more than three weeks. It also meant that sales at its wholesale partners were affected.
In its Europe, Middle East and Africa region, Nike said sales at physical retail stores fell due to pandemic-related closures and restrictions, while digital sales in the markets grew by 60%. It is said that about 60% of its stores in the region are open today, and some operate in fewer hours.
Nike’s direct-to-consumer business grew by 20% year-on-year to $ 4 billion. And online sales for the Nike brand rose 59% as consumers wanted to add new sneakers and athletic gear to their wardrobe.
Nike shares have risen more than 110% over the past twelve months since the market closed. It has a market capitalization of more than $ 225 billion.
Find the full press release from Nike here.
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