Sneaker giant Nike reported third-quarter earnings that topped analysts’ expectations. However, sales was hurt by port congestion in the U.S. and store closures in Europe.
Adjusted earnings for the quarter came in at 90 cents per share, compared to 76 cents expected by analysts polled by Refinitiv. Revenue increased to $10.36 billion from the year-ago quarter’s $10.1 billion; analysts forecast $11.02 billion.
Revenue in North America fell -10% year over year, hurt by shipment delays.
In Europe, Middle East and Africa region, sales at its physical retail stores decreased due to pandemic-related restrictions. However, online sales in those markets grew 60% in the latest period. According to Nike, about 60% of its stores in the region are open today, while some operate on reduced hours.
In Greater China, sales rose +51%. This is probably due to the region’s relatively quick recovery path from the pandemic.
For fiscal 2021, Nike projects revenue to rise by a low-to-mid-teens percentage from the prior year. Analysts had been expecting revenue growth of 15.9%, according to Refinitiv.
Nike expects fourth-quarter sales to grow +75% year over year, compared to analysts forecast of +64.3%.