Nike misses quarterly revenue estimates on temporary store closures
Nike Inc fell short of Wall Street estimates for third-quarter revenue on Thursday, as higher online demand failed to make up for a slump in sales at brick-and-mortar stores during the COVID-19 pandemic.
Rising COVID-19 infections in Canada and Europe and ensuing restrictions affected sales at retail stores in the quarter, even as Nike and its rival Adidas double down on their online channels.
Low shipping container availability and congestion issues at major U.S. ports have also been limiting the flow of goods into the United States, affecting sales at major apparel sellers.
The company’s shares fell 4% in extended trading after gaining about 40% in 2020.
Nike’s net income rose to $1.45 billion, or 90 cents per share, in the third quarter ended Feb. 28, from $847 million, or 53 cents per share, a year earlier.
The world’s largest sportswear maker said revenue rose to $10.36 billion from $10.1 billion, while analysts on average had expected $11.02 billion, according to IBES data from Refinitiv.