Journal du Club des Cordeliers - Strong pricing boosts Nike results despite China hit

NYSE - LSE
BTI -1.66% 59.48 $
AZN -0.63% 171.49 $
RIO -0.86% 83.42 $
RELX -0.2% 40.54 $
BCE -2.01% 20.4 $
NGG -0.95% 81.86 $
GSK -0.91% 50.75 $
CMSC 0% 19.6 $
RBGPF 3.6% 72.77 $
RYCEF -11.47% 15.26 $
BCC -0.71% 77.74 $
BP 2.47% 51.32 $
VOD -2.41% 15.74 $
JRI 0.65% 10.75 $
CMSD 0.91% 19.78 $
Strong pricing boosts Nike results despite China hit
Strong pricing boosts Nike results despite China hit

Strong pricing boosts Nike results despite China hit

Strong product pricing helped Nike offset a hit from lower sales in China, enabling the sporting goods giant to report better-than-expected quarterly profits on Monday.

Text size:

The apparel and sneaker company scored increased sales in three of its four operating regions, led by Asia Pacific/Latin America and North America, the company's biggest source of revenues.

Nike said its gross profit margin increased from the same period of last year due to more full-priced sales, partly offset by elevated freight and logistics costs.

But revenues fell five percent in Greater China to $2.2 billion. The region -- which has seen activity constrained by Beijing's "zero tolerance" policy on Covid-19 -- also saw the biggest drop in profits before interest and taxes.

The company reported total profits of $1.4 billion for the quarter ending February 28, down four percent from the prior year, even as revenues rose five percent to $10.9 billion.

Shares of Nike jumped 5.9 percent to $137.85 in after-hours trading.

M.Muller--JdCdC