Strong China sales boost Nike results, shares rise

NEW YORK (AFP) – Nike scored a big jump in China sales in the second quarter and reported better-than-expected results on Friday, following a coronavirus hit earlier in the year.

After suffering declines in revenues in the last two quarters, Nike reported an increase in sales in the quarter ending on November 30 as it has bolstered direct selling efforts to consumers in the wake of upheaval in the retail industry.

The sports giant said more than 90 per cent of company-owned stores are now open, with some at reduced hours. However, the company continues to experience declines in customer traffic in many regions due to COVID-19, Nike said.

Net income rose 12 per cent from the year-ago period to USD1.3 billion following a nine per cent increase in revenues to USD11.2 billion.

Sales were especially strong in greater China, rising 24 per cent from the year-ago period.

Shares jumped 2.3 per cent to USD142.50 in after-hours trading.

Nike’s booth at the consumer goods exhibition area during the third China International Import Expo (CIIE) in Shanghai. PHOTO: XINHUA