Consumer
Nike Profitability Lags Even as Sales Outpace Expectations
- Sportswear giant boosts sales outlook for current fiscal year
- Revenue outpaces expectations in all regions except China
Nike shoes are displayed at a Nike Store in San Francisco.
Photographer: Justin Sullivan/Getty ImagesThis article is for subscribers only.
Nike Inc. reported quarterly sales that beat Wall Street’s expectations as the sportswear brand worked down its excess inventory, but profitability missed estimates amid markdowns and high freight and material costs.
Global revenue rose 14% to $12.4 billion in the quarter ended Feb. 28. That was above analysts’ average estimate of $11.5 billion. Gross margin was 43.3%, below the 43.7% estimate.