Nike reported higher-than-forecast sales in its third quarter, but higher markdowns to help liquidate inventory weighed on profits. Profit at the sneaker maker fell 11% as it relied on higher markdowns. [Nike Sales Jump as It Works Through Inventory Glut - WSJ]
The sports apparel group reported $12.4bn in revenues, up 11 per cent from a year ago and surpassing analysts’ expectations for $11.5bn. That came despite an 8 per cent decline in Greater China sales, due in part to restrictive Covid-19 policies at the start of the quarter.
Revenue from footwear, Nike’s largest category, increased 20 per cent on annual basis.
Nike reported a $1.24bn net profit that beat estimates, but was down 11 per cent from a year ago. Markdowns on products and currency exchange rates ate into its gross margin, which fell to 43.3 per cent from 46.6 per cent.
Shares of the company swung between gains and losses in after-hours trading, but were down 0.3 per cent at pixel time.