Nike Inc. posted sales growth across regions last quarter, boosted by record revenue in North America as the athletic-wear company tries to move past pandemic challenges.
Global sales almost doubled to $12.3 billion in the period ended May 31, the company said Thursday in a statement. That beat analysts’ expectations.
Chief Executive Officer John Donahoe is pushing more direct-to-consumer sales as management radically cuts down on wholesale distribution. That’s led to a rise in sales for its Nike Direct division, which spiked 73% in the latest quarter. Margins also improved.
Nike’s sales growth in Greater China, which had led the company’s revival, is starting to cool off. The revenue climbed just 17 percent — and less when excluding currency swings — to $1.93 billion, missing analysts’ expectations of $2.25 billion. The results may reflect the impact of boycotts of Nike and other brands over corporate statements on forced labour related to cotton production in the Xinjiang region.
The shares rose 4.7 percent as of 4:23 p.m. after regular trading in New York. Shares were down 5.6 percent this year through Thursday’s close.
By Kim Bhasin