Caribbean Business Reports

Nike Inc’s second-quarter revenue and profit topped Wall Street’s expectations, bolstered by e-commerce sales and rebounding growth in China.

Sales rose 8.9 per cent to US$11.2 billion in the quarter ended November 30, the athletic wear company reported Friday. Analysts had projected US$10.6 billion. Earnings came in at 78 cents a share, compared with a 62-cent estimate.

Key Insights

• With China’s recovery ahead of other parts of the world, sales there rose 24. North America sales, meanwhile, were little changed as the resurgent coronavirus challenged retailers.
• Nike has been dealing with excess inventory throughout the pandemic, following temporary store shutdowns and fewer shipments going out to other retailers. Levels were down 1.8 per cent from the prior year.
• Like many retailers, Nike invested heavily in its e-commerce operations as consumers stuck at home shifted their shopping online this year. Its direct sales climbed 32 per cent last quarter, helping make up for the brick-and-mortar slump.

Market Reaction

Nike shares rose as much as 6 per cent to US$145.49 in extended trading on Friday. The stock has gained 36 per cent this year through the close.