Nike Inc. posted sales growth across regions last quarter, boosted by record revenue in North America as the athletic-wear company tries to move past pandemic challenges.
Chief Executive Officer John Donahoe is pushing more direct-to-consumer sales as management radically cuts down on wholesale distribution. That’s led to a rise in sales for its Nike Direct division, which spiked 73% in the latest quarter. Margins also improved.
Nike’s sales growth in Greater China, which had led the company’s revival, is starting to cool off. The revenue climbed just 17 percent — and less when excluding currency swings — to $1.93 billion, missing analysts’ expectations of $2.25 billion. The results may reflect the impact of boycotts of Nike and other brands over corporate statements on forced labour related to cotton production in the Xinjiang region.
By Kim Bhasin