- Nike shares fell as much as 5.4% on Friday following a mixed third-quarter earnings report.
- Sales of $10.36 billion fell short of Wall Street’s target of $11.02 billion.
- The company said congestion at US ports cut into sales but growth in digital sales softened the blow.
- See more stories on Insider’s business page.
Nike stock fell on Friday after the athleticwear-maker’s third-quarter sales missed Wall Street’s expectations, with the company pointing to supply chain problems. Shares fell as much as 5.4%.
The company late Thursday said quarterly revenue was $10.36 billion, which fell short of the Refinitiv consensus estimate of $11.02 billion. A year ago, sales were $10.10 billion.
Supply chain “challenges” pushed North American revenue down by 10% to $3.56 billion. The company said it faced global container shortages and congestion at US ports which delayed the flow of inventory during the quarter by more than three weeks and hurt wholesale shipments. Sales, however, were partially offset by growth of 15% at its Nike Direct business.
Nike also said sales at physical stores in Europe, Middle East and Africa regions fell as 45% of company-owned stores were closed during the last two months of the quarter because of restrictions related to COVID-19. But digital sales in those regions climbed by 60%.
“We continue to see the value of a more direct, digitally-enabled strategy, fueling even greater potential for NIKE over the long term,” said Matt Friend, chief financial officer at Nike, in the earnings statement.
Meanwhile, revenue from Greater China rose by 42% on a currency-neutral basis.
Earnings rose by 70% to $0.90 per share from $0.53 per share and came in ahead of the consensus estimate of $0.76 per share.
Nike said it expects to resume share repurchases in the fourth quarter of 2021. The company temporarily suspended share buybacks during the fourth quarter of 2020 to maximize liquidity during the pandemic.
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