Nike saw profits rise sharply during the previous quarter, although revenue growth was held back by major supply issues in the United States and ongoing store closures in Europe.
Lower sales than expected
In the quarter ending February 28, Nike's total sales rose to 10.36 billion dollars (8.71 billion euros) from 10.1 billion dollars (8.5 billion euros) a year ago. Analysts had expected around 11 billion dollars (9.25 billion euros), writes CNBC.
In North America, however, sales fell by 10 per cent year-on-year due to delays in supplies. According to the sports brand, these problems have been dragging on for several weeks. Sales at wholesale partners, such as department stores and speciality sports shops, also suffered from the delays.
In Europe, the Middle East and Africa, sales in physical stores declined due to pandemic-related closures and restrictions. On the other hand, online sales performed very well and grew by 60 per cent. About 6 out of 10 Nike stores in those regions are currently open for business.
Optimism and profit
Despite the somewhat disappointing sales, Nike did record a sharp increase in profit. The bottom line was 1.45 billion dollars (1.22 billion euros), compared to 847 million dollars (712 million euros) in the same period a year earlier.
Although the global health crisis continues to cause uncertainty, Nike says it expects closures in Europe to ease in April and delivery times in North America to improve slowly over the remainder of the year. For the full financial year, the sports group counts on a sales growth of between 13 and 16 per cent.