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