Oregon footwear maker Nike beats estimate, as strong US, EU sales offset China drop

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Oregon footwear maker Nike beats estimate, as strong US, EU sales offset China drop

On Tuesday, the 24th of March 2020, the Eugene, Oregon-based American multinational footwear manufacturer had beaten Wall St. estimates for its third quarterly revenue of the year that ended on February 29th, almost entirely driven by a strident surge in demand in North American alongside Europe which in effect had eased a sharp drop of sales in China due to the coronavirus-led lockdown.

In point of fact, it had been the first time in six years the Oregon based sportswear and footwear manufacturer had reported a drop in China sales, nonetheless, followed by the reveal of its upbeat third quarterly report, shares’ prices of the NYSE-listed Dow Jones’ blue-chip Nike Inc.

wrapped up the day 15.18 per cent higher to $72.33 per share, while during preparation of the report in after-market trading, Nike Inc. shares were trading more than 21 per cent higher to $80.81 per share. On top of that, according to Nike Inc.’s Tuesday’s (March 24th) quarterly earnings’ report, the Oregon-based footwear manufacturer’s sales in Greater China fell by 4 per cent during its third quarter due to a prolonged closure of nearly 75 per cent of its outlets in China, while its North American and European revenues rose by 4 per cent and 11 per cent respectively.

Besides, Nike Inc. was also reported on Tuesday (March 24th) that its net revenue in the third quarter had surged by 5.1 per cent to $10.10 billion, beating Wall St. estimates of an average of $9.80 billion, IBES data from Refinitiv had revealed, however, Nike Inc.’s net income fell more than 20 per cent to 53 cent per share to $847 million compared to an earning of 68 cents per share at the same time a year earlier.