fbpx
The annual Global Impact Conference 2022 brings together visionary business leaders to revolutionize educational systems and inspire collaborative actionRead more APO Group announces content partnership with Pan-African broadcaster VoxAfricaRead more MainOne, an Equinix Company’s MDXi Appolonia Achieves Tier III Constructed Facility certification (TCCF), Now Most Certified Data Center in GhanaRead more United Nations High Commissioner for Refugees (UNHCR) warns rising tide of hunger, insecurity, and underfunding worsening gender-based violence risksRead more The Royal Thai Embassy presents the cultures of Thailand at the Association of Southeast Asian Nations (ASEAN) Festival in KenyaRead more Climate change is the biggest global threat, young people in Africa and Europe tell European Investment Bank (EIB), Debating Africa and Debating EuropeRead more $2 million in prizes awarded at Conference of the Parties (COP27) to African youth-led businessesRead more Africa and Europe’s top business and public sector leaders gather to chart Africa’s economic rebirthRead more The Thai delegation’s active participation at the 145th Assembly of the Inter-Parliamentary Union (IPU) in KigaliRead more Canon shares winning image of its Redline Challenge competition 2022Read more

Nike earnings boosted by strength in North America, good pricing

show caption
Strong sales in North America helped Nike report higher profits despite a hit from China./AFP
Print Friendly and PDF

Dec 21, 2021 - 02:04 AM

NEW YORK — Nike reported increased quarterly profits on higher sales in North America amid strong pricing on Monday, even as supply chain woes in Asia dented results in China and other markets.

The sports giant, which had warned previously of a drag from elevated shipping costs as well as outages at key Asian factories due to Covid-19 restrictions, said results in North America and the Europe-Middle East-Africa region benefited from higher levels of inventory already in transit at the start of the quarter.

The boom in North America follows investments in direct selling to consumers that includes new facilities on the East and West coasts of the United States and some 1,000 robots in distribution centers to handle online orders, executives said.

Results were also lifted by stronger pricing and fewer promotions, with “inventory supply significantly lagging demand,” as Chief Financial Officer Matt Friend put it, while confirming a full-year sales forecast.

But sales fell in both Greater China and the Asia Pacific & Latin America divisions, with Nike citing “lower levels of available inventory resulting from Covid-19 factory closures.”

Friend said the company’s Vietnam factories began reopening in October and have seen steady employee attendance improvement. Production now stands at 80 percent of pre-closure volumes.

“Compared with 90 days ago, we’re increasingly confident supply will normalize into fiscal 2023,” Friend said.

Net income rose seven percent to $1.3 billion on a one percent increase in revenues to $11.3 billion for the quarter ending November 30, Nike’s second quarter for fiscal 2022.

Shares rose 3.3 percent to $162.21 in after-hours trading.

  • bio
  • twitter
  • facebook
  • latest posts

MAORANDCITIES.COM uses both Facebook and Disqus comment systems to make it easier for you to contribute. We encourage all readers to share their views on our articles and blog posts. All comments should be relevant to the topic. By posting, you agree to our Privacy Policy. We are committed to maintaining a lively but civil forum for discussion, so we ask you to avoid personal attacks, name-calling, foul language or other inappropriate behavior. Please keep your comments relevant and respectful. By leaving the ‘Post to Facebook’ box selected – when using Facebook comment system – your comment will be published to your Facebook profile in addition to the space below. If you encounter a comment that is abusive, click the “X” in the upper right corner of the Facebook comment box to report spam or abuse. You can also email us.