Nike stumbles due to shipping pain

Nike Co., Ltd.

NKE -1.14%

Joined the growing list of US companies under global pressure Supply chain disruption Due to the Covid-19 pandemic.

Sneaker giants reported lower-than-expected quarterly sales on Thursday, saying sales were hampered by global container shortages and congestion at West Coast ports that delayed inventory flow for more than three weeks. did. The company said it hopes to generate the revenue it missed this quarter.

“We are optimistic about the pace of vaccine distribution and how this will enable a safe resumption of the global economy in the near future, but the effects of the virus continue to cause short-term fluctuations in performance.” Said Matthew Friend, Chief Financial Officer. At the announcement of the company’s financial results.

Nike’s third-quarter sales were $ 10.36 billion, up 2.5% year-over-year. On a constant currency basis, North American revenues fell 11%, while Greater China revenues increased 42%.

Nike’s share price fell about 3% after business hours.

Supply chain issues have hit every manufacturer, from automobiles and clothing to fitness equipment and medical needle containers. Port delinquency and turbulent weather complicate the response to strong consumer demand from pandemics.

Nike said quarterly sales of $ 4 billion, up 20%, offset some shipping issues. Meanwhile, digital revenue increased 59% and North American digital revenue reached $ 1 billion for the first time, the company said.

In the early days of the pandemic, Nike closed stores and continued to pay workers, but digital sales doubled as consumers were trapped in their homes. The company said Thursday that it was still experiencing the effects of the virus on safety-related measures and blockades in some areas.

Prior to the pandemic, sportswear giants were strengthening their consumer business directly through their websites and stores.

In 2019, it broke up Co., Ltd.

AMZN -3.44%

And Reduction of the number of stores Sell ​​the item. We also invested in apps for shopping, selling sneakers, and guided training.

Nike’s revenue for the third quarter, which ended February 28, was $ 1.45 billion (90 cents per share), compared to $ 847 million (53 cents per share) in the year-ago quarter.

Write to Khadeeja Safdar at And Kimberly Chin

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On March 19, 2021, it appeared in the print version as “Nike Sales Rise fell short of target”.

Nike stumbles due to shipping pain

Source link Nike stumbles due to shipping pain

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