Nike on Monday reported an increase in quarterly profit on the back of higher sales in North America amid high prices, even as supply chain issues in Asia hurt results in China and other countries. other markets.
The sports giant, which previously warned of a slowdown in high shipping costs as well as outages at key Asian factories due to Covid-19 restrictions, said results in North America and the Europe-Middle East-Africa region had benefited from higher inventory levels. already in transit at the start of the quarter.
The boom in North America follows investments in direct-to-consumer sales, which include new facilities on the east and west coasts of the United States and some 1,000 robots in distribution centers to handle online orders, leaders said.
Results were also boosted by higher prices and fewer promotions, with “inventory supply significantly lagging behind demand”, as CFO Matt Friend said, while confirming a sales forecast for the whole year.
But sales fell in both Greater China and the Asia-Pacific and Latin America divisions, with Nike citing “lower inventory on hand resulting from Covid-19 factory closures”.
Friend said the company’s Vietnamese factories began reopening in October and saw steady improvement in employee attendance. Production now stands at 80% of pre-closure volumes.
“Compared to 90 days ago, we are increasingly confident supply will normalize in fiscal year 2023,” Friend said.
Net income rose 7% to $1.3 billion on a 1% increase in revenue to $11.3 billion for the quarter ending Nov. 30, Nike’s second quarter for fiscal 2022.
The shares rose 3.3% to $162.21 in after-hours trading.
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