WASHINGTON: Nike’s turnaround efforts showed signs of progress as the sportswear maker reported quarterly results that largely topped Wall Street expectations on Tuesday, although sales in China continued t o decline, reported German Press Agency (dpa).
The Adidas rival reported revenue of US$10.97 billion for the quarter, down 1 per cent from a year earlier but ahead of analysts’ average estimate of US$10.86 billion. Net income rose to US$1.07 billion from US$211 million a year earlier, primarily driven by a US$986 million tariff-related refund.
Chief financial officer Matthew Friend said the company was operating in an “increasingly challenging operating environment”.
Nike generated S$4.83 billion in revenue in North America, slightly below analysts’ expectations, while sales in China totalled about US$1.3 billion, exceeding market forecasts despite another year-on-year decline in the key market.
Nike shares were down more than 4 per cent in after-hours trading.
Three months ago, Nike warned that the Iran war could create unexpected volatility in consumer spending, including through higher oil prices.
The company has been trying to recover from a downturn partly caused by its own strategy of prioritising direct-to-consumer sales at the expense of wholesale partners. That approach allowed competing brands to gain shelf space at retailers, particularly in the United States, weighing on Nike’s sales.
Under chief executive Elliott Hill, Nike has sought to rebuild relationships with retail partners while shifting its product strategy back towards performance sports after lifestyle products had taken a larger share of its portfolio in recent years. – BERNAMA-dpa
