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Clothing & Shoes

Nike global revenues up 3% as online helps offset store closures

Revenues for its Converse brand were $570m (£409m), up 8% on a currency-neutral basis, led by strong digital performance in North America and Europe

Global sportswear giant Nike has revealed that its revenues for the third quarter of the year were $10.4bn (£7.4bn) up 3% compared to the prior year.

The retailer revealed that despite a large portion of its store estate in Europe remaining closed during the final two months of the quarter, its revenues were boosted by a 59% increase in digital revenues and a 51% increase in revenue from its Greater China region.

It added it comes as North America reported revenue declined 10% due to supply chain challenges, including global container shortages and U.S. port congestion, impacting the flow of inventory and timing of wholesale shipments.

Revenues for its Nike Brand was $9.8bn (£7bn), a decrease of 2% on the year prior on a currency-neutral basis, primarily due to declines in its wholesale business which it attributed to container shortages and the “mandatory” store closures in Europe.

Revenues for its Converse brand were $570m (£409m), up 8% on a currency-neutral basis, led by strong digital performance in North America and Europe.

John Donahoe, president and CEO, said: “Nike continues to deeply connect with consumers all over the world driven by our strong competitive advantages. Our strategy is working, as we accelerate innovation and create the seamless, premium marketplace of the future. I’ve never been more confident in our leadership and teams to operate with agility in a dynamic environment.

“Our third quarter revenue performance was impacted by disruption related to the COVID-19 pandemic, particularly in North America and EMEA. North America revenues declined 11% 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, and partially offset by NIKE Direct growth of 15%.”

He added: “EMEA physical retail sales declined, as 45%of Nike-owned stores experienced mandatory COVID-19 related closures for the last two months of the quarter, however this was partially offset by digital sales, which increased 60%.”

Matt Friend, executive VP and CFO, said: “Nike’s brand momentum is as strong as ever and we are driving focused growth against our largest opportunities. We continue to see the value of a more direct, digitally-enabled strategy, fueling even greater potential for Nike over the long term.”

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