{"id":205846,"date":"2021-03-19T01:32:00","date_gmt":"2021-03-18T22:32:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/nike-sales-growth-slows-amid-supply-issues-and-the-stock-is-falling\/"},"modified":"2021-03-19T01:32:00","modified_gmt":"2021-03-18T22:32:00","slug":"nike-sales-growth-slows-amid-supply-issues-and-the-stock-is-falling","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/nike-sales-growth-slows-amid-supply-issues-and-the-stock-is-falling\/","title":{"rendered":"#\n  Nike sales growth slows amid supply issues, and the stock is falling"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_89 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6af5d9d67690d\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6af5d9d67690d\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/nike-sales-growth-slows-amid-supply-issues-and-the-stock-is-falling\/#Nike_says_difficulties_in_getting_merchandise_to_North_America_slowed_revenue_growth_during_holiday_season_but_earnings_still_beat_expectations\" >Nike says difficulties in getting merchandise to North America slowed revenue growth during holiday season, but earnings still beat expectations<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/nike-sales-growth-slows-amid-supply-issues-and-the-stock-is-falling\/#Jeremy_C_Owens\" >Jeremy C. Owens<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong>#<br \/>\n  Nike sales growth slows amid supply issues, and the stock is falling<br \/>\n<\/strong>&#8221;<\/p>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\"><span class=\"ez-toc-section\" id=\"Nike_says_difficulties_in_getting_merchandise_to_North_America_slowed_revenue_growth_during_holiday_season_but_earnings_still_beat_expectations\"><\/span>\n  Nike says difficulties in getting merchandise to North America slowed revenue growth during holiday season, but earnings still beat expectations<br \/>\n<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><\/p>\n<div class=\"column column--full article__content\">\n<div id=\"js-article__body\" class=\"article__body article-wrap at16-col16 barrons-article-wrap\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0000204456\">\n<div class=\"barrons-article-ad-wrapper\">\n<div data-track=\"barrons-article-ad-wrap\" class=\"barrons-article-ad sticky_item\">\n<div class=\"barrons-main-article-ad-target sticky_target body_ad\" aria-hidden=\"true\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>       Nike Inc. sales grew slower than expected in the heart of the holiday season, as disruptions in its supply chain made delivering goods to North America more difficult, and shares fell in after-hours trading Thursday.<\/p>\n<p> Nike<br \/>\n        NKE,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/203439053\/composite\" class=\"negative\">-1.14%<\/bg-quote><br \/>\n       on Thursday reported fiscal third-quarter earnings of $1.45 billion, or 90 cents a share, up from $847 million a year ago. Nike\u2019s sales reached $10.36 billion, up from $10.1 billion in the same period last year but lower than expectations. Analysts on average expected earnings of 76 cents a share on sales of $11 billion, according to FactSet.<\/p>\n<div class=\"paywall\">\n       Nike\u2019s sales declined year-over-year for two consecutive quarters in 2020, as the COVID-19 pandemic shut down stores. Revenue growth bounced back in the fiscal second quarter, however, when the athletic-<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>arel company reported record quarterly revenue of $11.2 billion in a period that included Black Friday sales.<\/p>\n<p>Sales growth slowed down in the most recent quarter, though, as the company was hampered by supply-chain issues, most notably moving merchandise from Asian factories to North America. Executives cited \u201cdisruption related to the COVID-19 pandemic, particularly in North America and EMEA\u201d in the announcement.<\/p>\n<p>\u201cNorth America revenues declined 11 percent on a currency-neutral basis, largely driven by global container shortages and U.S. port congestion, which delayed the flow of inventory in the third quarter by more than three weeks, impacting timing of wholesale shipments,\u201d Nike disclosed.<\/p>\n<p>Stifel analysts wrote this week that the supply issues could \u201cbe a near-term challenge to sales.\u201d<\/p>\n<p>\u201cShipping container availability and port congestion is limiting the flow of goods to wholesale customers and end consumers,\u201d they wrote, while maintaining a buy rating and $168 price target. \u201cThis dynamic is most notable in North America, where labor restrictions at West Coast ports related to COVID-19 have caused time delays and cost pressure to get goods into the distribution networks.\u201d<\/p>\n<p>Thursday\u2019s results captured most of the holiday-shopping period, running from Dec. 1 through the end of February, and also showed slowing gains in e-commerce sales. Nike disclosed Thursday that digital sales increased 59%, after reporting 84% growth in the previous quarter and percentage growth of about 80% in the two quarters before that.<\/p>\n<p>The company has focused on building its direct-to-consumer online sales capabilities in the past year, especially for high-demand products such as Air Force One sneakers, as sales through retailers can lead to lower margins and average selling prices. Nike said Thursday that direct sales grew 20% in the quarter, after 32% growth in the previous quarter.<\/p>\n<p>Nike executives expect sales growth to accelerate more sharply in the fiscal fourth quarter, though that is more a reflection of the difficulties experienced in that period last year, as the COVID-19 pandemic hurriedly shut down commerce globally. Chief Financial Officer Matthew Friend guided for sales growth of roughly 75% from last year\u2019s total of $6.3 billion, which would be slightly more than $11 billion. That forecast beats analysts\u2019 average expectation of $10.4 billion, but only fills the hole in sales from the third quarter\u2019s miss, as Friend acknowledged in a conference call Thursday.<\/p>\n<div id=\"cx-membership-tile\"><\/div>\n<p>\u201cWe expect to capture this delayed revenue in the fourth quarter,\u201d Friend said, after noting \u201ca lack of available supply, delayed shipments to wholesale partners and lower-than-expected quarterly revenue growth.\u201d  <\/p>\n<p>Friend did not specifically state executives were changing Nike\u2019s forecast for the full year, but did guide for revenue growth in the low- to mid-teens in terms of percentages, while in the previous quarter he had forecast sales growth in the low teens. Some analysts wrote in recent days that they expected executives to push the annual forecast modestly higher, and the average analyst forecast for annual sales sat at $43.33 billion Thursday, 15.8% higher than last year\u2019s total. <\/p>\n<p>Nike also announced that it will resume share repurchases, after halting its buybacks last March.<\/p>\n<p>Nike shares fell more than 3% in after-hours trading following the release of the results. Shares closed Thursday with a 1.1% decline at $143.17, but have gained 110.4% in the past year, as the S&amp;P 500 index<br \/>\n        SPX,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210599714\/realtime\" class=\"negative\">-1.48%<\/bg-quote><br \/>\n       increased 65.7% and the Dow Jones Industrial Average<br \/>\n        DJIA,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210598065\/realtime\" class=\"negative\">-0.46%<\/bg-quote><br \/>\n       \u2014 which counts Nike as one of its 30 components \u2014 grew 65.9%.<\/p><\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>      <span>By<\/span><\/p>\n<div class=\"author  hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"Jeremy C. Owens\",\"subhead\":\"The Wall Street Journal\",\"list\":[]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n<h4 itemprop=\"name\"><span class=\"ez-toc-section\" id=\"Jeremy_C_Owens\"><\/span>Jeremy C. Owens<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/p><\/div>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"http:\/\/www.marketwatch.com\/news\/story.asp?guid=%7B21005575-02D4-D4B5-4572-D31EA802B7BF%7D&#038;siteid=rss&#038;rss=1\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Nike sales growth slows amid supply issues, and the stock is falling &#8221; Nike says difficulties in getting merchandise to North America slowed revenue growth during holiday season, but earnings still beat expectations Nike Inc. sales grew slower than expected in the heart of the holiday season, as disruptions in its supply chain made&#8230;<\/p>\n","protected":false},"author":1,"featured_media":205847,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[],"class_list":["post-205846","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/205846","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=205846"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/205846\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/205847"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=205846"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=205846"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=205846"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}