NKE Nike Inc

By Kimberly Chin 

Nike Inc. posted lower-than-expected sales in its latest quarter, with the sneaker giant citing shipping challenges amid the Covid-19 pandemic for denting sales.

Nike's revenue was $10.36 billion, a 2.5% increase from the year-earlier period but the figure fell lower than analysts were targeting. On a constant-currency basis, North American revenue declined 11%, the company said.

"Our third-quarter revenue performance was impacted by disruption related to the Covid-19 pandemic, particularly in North America and EMEA, " the company said in prepared remarks. It added that a global container shortage and U.S. port congestion delayed the flow of inventory in the quarter by more than three weeks.

Nike is not alone. Supply chain issues have hit makers of everything from cars and clothing to fitness equipment and medical needle containers, as port backlogs and weather disruptions have tempered strong consumer demand driven by the pandemic.

Nike's direct sales, which rose 20% to $4 billion, somewhat offset the shipping problems, the company said. Meanwhile, digital revenue increased 59% in the February quarter.

Before the pandemic hit, the sportswear giant had been beefing up its direct-to-consumer business through its own website and stores. In 2019, it parted ways with Amazon.com Inc. and cut back on the number of stores that could sell its goods. It also had been investing in apps for shopping, selling sneakers and guided workouts.

For the fiscal third quarter, Nike had earnings of $1.45 billion, or 90 cents a share, compared with $847 million, or 53 cents a share, a year ago.

Write to Kimberly Chin at kimberly.chin@wsj.com

(END) Dow Jones Newswires

March 18, 2021 17:25 ET (21:25 GMT)

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