Strong Pricing Boosts Nike Results Despite China Hit
Strong product pricing helped Nike offset a hit from lower sales in China, enabling the sporting goods giant to report better-than-expected quarterly profits on Monday.
The apparel and sneaker company scored increased sales in three of its four operating regions, led by Asia Pacific/Latin America and North America, the company's biggest source of revenues.
Nike said its gross profit margin increased from the same period of last year due to more full-priced sales, partly offset by elevated freight and logistics costs.
But revenues fell five percent in Greater China to $2.2 billion. The region -- which has seen activity constrained by Beijing's "zero tolerance" policy on Covid-19 -- also saw the biggest drop in profits before interest and taxes.
The company reported total profits of $1.4 billion for the quarter ending February 28, down four percent from the prior year, even as revenues rose five percent to $10.9 billion.
Shares of Nike jumped 5.9 percent to $137.85 in after-hours trading.
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