Nike Posts Higher Sales in U.S., China
December 19 2019 - 05:44PM
Dow Jones News
By Kimberly Chin
Nike Inc. posted a 10% jump in sales in the latest quarter, even
after the sportswear giant decided to stop selling through
Amazon.com Inc. and faced criticism for its support of disgraced
running coach Alberto Salazar.
Revenue in the North American market, which accounts for the
majority of Nike's sales, rose 5% from a year ago. The gains were
driven by footwear, as apparel sales were flat. The fastest-growing
region was Greater China, where revenue jumped 20% from a year
ago.
Nike's shares, which have climbed 36% this year, were off about
1% at $100.30 in after-hours trading.
In November, Nike said it would stop selling its clothes and
sneakers directly on Amazon to focus on its own apps and stores.
The company sold a relatively small amount of goods on the site,
though many third parties resell Nike products on the site.
Instead, Nike has tried to drive consumers to its own shopping apps
and reduce its reliance on traditional retailers.
For the quarter ended Nov. 30, Nike reported a profit of $1.12
billion, or 70 cents a share, up from $847 million, or 52 cents a
share, a year ago. Overall sales were $10.3 billion for the quarter
and exceeded analysts' estimates of $10.1 billion.
During the quarter, Nike came under scrutiny for its silence on
the Hong Kong protests and its support for Mr. Salazar, who
received a four-year ban for doping. Mr. Salazar has said he
planned to appeal the sanction. He also has disputed allegations
from some former female athletes that he mistreated them.
On Oct. 1, Chief Executive Mark Parker sent an email to Nike
employees saying the company would never condone cheating and
underscoring his support for Mr. Salazar. A few days later, Mr.
Parker said the company was disbanding the Nike Oregon Project, an
elite running team Mr. Salazar coached.
About two weeks later, Mr. Parker said he would step down as CEO
in January and become executive chairman. John Donahoe, a former
eBay Inc. chief executive and a current member of Nike's board,
will take over as CEO in January.
Write to Kimberly Chin at kimberly.chin@wsj.com
(END) Dow Jones Newswires
December 19, 2019 17:29 ET (22:29 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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