Nike scores revenue jump as China and online sales offset US and Europe store closures
Sportswear giant Nike reported a jump in revenue in the third quarter, despite the impact of coronavirus restrictions on trading in the US and Europe, driven by soaring growth in China and online sales.
The US company said this evening that reported revenues were $10.4bn in the three months ended 28 February, up three per cent on the previous year.
The jump was driven by 51 per cent revenue growth in Greater China, offsetting a 10 per cent decline in North American sales due to supply chain issues including container shortages and US port congestion.
Physical sales in Europe, the Middle East and Africa declined, as 45 per cent of Nike-owned stores were closed due to the Covid-19 pandemic in the final two months of the quarter.
Around 65 per cent of stores in the EMEA region are now open or operating on reduced hours.
Nike Direct sales were $4bn, up 20 per cent, and its brand digital sales increased 59 per cent on the previous year, as the brand continues to pursue its direct-selling strategy.
Diluted earnings per share for the quarter was 90 cents, Nike said.
“Nike continues to deeply connect with consumers all over the world driven by our strong competitive advantages,” said Nike president and chief executive John Donahoe.
“Our strategy is working, as we accelerate innovation and create the seamless, premium marketplace of the future.
“I’ve never been more confident in our leadership and teams to operate with agility in a dynamic environment.”