On Thursday, Nike Inc., the Beaverton, Oregon-headquartered American multinational footwear company, had reported a rise in net incomes over its fiscal third-quarter that ended on February 28, however, the world’s second-largest sports apparel manufacturer’s quarterly sales fell short of Wall Street analysts’ estimates on an average, as a pandemic-induced slump in sales on brick-and-mortar stores alongside a steeper supply chain disruption had weighed heavily on the world’s No.
1 athletic shoe maker’s full-year revenue forecast. According to Nike Inc.’s third-quarter earnings’ report released late in the day, the Oregon-based footwear manufacturer had forecasted a “low-to-mid-teens” growth in revenues this year, missing an analysts’ estimate of an increase of 15.9 per cent in annual revenues, IBES data from Refinitiv had unveiled.
In tandem, followed by a dour full-year revenue forecast, NYSE-listed shares’ prices of Nike Inc. tumbled just a notch shy of 4 per cent to $137.55 in post-market trading after wrapping up the day 1.14 per cent lower to $143.17 apiece.
Nike third-quarter sales crippled by pandemic, shipping issues; forecast disappoints
Concomitantly, according to Nike Inc.’s third-quarterly earnings’ report release late in the day, the Oregon-based sports footwear and apparel maker’s revenue rose to $10.36 billion in fiscal Q3, 2021 compare to a reading of $10.1 billion registered at the same time a year earlier, however, the company had also added that its revenues from N.
American businesses plunged as much as 11 per cent due to shipping issues such as container shortages alongside a US port congestion which had locked up its products on the dock more than three weeks in the quarter. Nike Inc.’s net income, in tandem, had soared to $1.45 billion or 90 cents per share over fiscal Q3, 2021 that ended on February 28, up from a net income of 53 cents per share or $847 million recorded at the same time a year earlier, beating an analysts’ estimate of an earning of 76 cents per share.
Meanwhile, referring to a relatively rosy fourth-quarter sales outlook, Nike Inc Chief Financial Officer (CFO) Matthew Friend said in a post-earnings’ conference call with the reporters, “We expect to capture this delayed revenue in the fourth quarter”.