During the second quarter of its financial year, Nike has seen its net profit rise significantly. However, the sportswear giant continues to be affected by supply problems.
Stagnating sales
Nike posted total sales of 11.4 billion dollars (10 billion euros) in the second quarter of its financial year, up 1 % from the same period last year. Excluding currency effects, revenue remained stable.
Factory closures due to Covid-19 and supply chain disruptions significantly impacted the business: revenues fell by nearly a quarter in ‘Greater China’ and by 6 % in Asia and Latin America. In North America (+ 12 %) and Europe (+ 6 %), Nike was able to grow as an increase in pipeline inventory materialised over the course of the quarter.
Direct to consumer (‘Nike Direct’) sales grew 8 %, driven by a 30 % growth in North America, with record sales during Black Friday. E-commerce revenues grew by 11 %, also fuelled by successful sales in the United States.
Despite persistent stock issues, Nike was able to boost profits significantly. The sportswear group posted a net profit of 1.33 billion dollars (1.2 billion euros), almost 7 % more compared to the same period last year.
