Nike misses quarterly revenue estimates on temporary store closures

REUTERS: Nike fell short of Wall Street estimates for third-quarter revenue on Thursday (Mar 18), as higher online demand failed to make up for a slump in sales at brick-and-mortar stores during the COVID-19 pandemic.

Rising COVID-19 infections in Canada and Europe and ensuing restrictions affected sales at retail stores in the quarter, even as Nike and its rival Adidas double down on their online channels.

Low shipping container availability and congestion issues at major U.S. ports have also been limiting the flow of goods into the United States, affecting sales at major apparel sellers.

The company's shares fell 4per cent in extended trading after gaining about 40per cent in 2020.

Nike's net income rose to US$1.45 billion, or 90 cents per share, in the third quarter ended Feb. 28, from US$847 million, or 53 cents per share, a year earlier.

The world's largest sportswear maker said revenue rose to US$10.36 billion from US$10.1 billion, while analysts on average had expected US$11.02 billion, according to IBES data from Refinitiv.