Nike smashes revenue, profit estimates on China demand, online boom
(Reuters) - Nike Inc comfortably beat analysts' estimates for quarterly revenue and profit on Tuesday, powered by a rebound in demand in China and strong online sales, sending its shares up about 9%. The footwear maker has benefited from its focus on direct-to-consumer sales, especially through its own outlets and apps, as the pandemic has forced customers to avoid shopping at malls and department stores
(Reuters) - Nike Inc
The footwear maker has benefited from its focus on direct-to-consumer sales, especially through its own outlets and apps, as the pandemic has forced customers to avoid shopping at malls and department stores.
The Nike brand's digital sales surged 82% in the first quarter ended Aug. 31, with at least double-digit rises recorded in all regions.
Overall, sales in China, where the economy opened from lockdowns much earlier than in other parts of the world, rose 6%.
In North America, the company's biggest market, sales fell 2% to $4.23 billion, but easily beat analysts' estimate of $3.39 billion, according to IBES data from Refinitiv.
"Nike is recovering faster based on accelerating brand momentum and digital growth," Chief Financial Officer Matt Friend said in a statement.
The company's net income rose to $1.52 billion, or 95 cents per share, from $1.37 billion, or 86 cents per share, a year earlier.
Revenue fell 0.6% to $10.6 billion.
Analysts had forecast a profit of 47 cents per share and revenue of $9.15 billion.
(Reporting by Nivedita Balu in Bengaluru; Editing by Sriraj Kalluvila)
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