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Nike Inc.’s quarterly revenue and profit figures went beyond Wall Street expectations on Thursday capped by surging sales in China. However, the leading footwear’s sales in North America are a letdown as it hit lower-than-expected figures to overshadow the beat.
Nike continues to struggle in North America as it faces tough competition from other brands including Adidas, Skechers, and VF Corp’s Vans.
Nike hit a 5.3% increase for $3.98 billion in the second quarter, compared to last year’s 9% rise. However, it missed Wall Street expectations of posting $4 billion.
“The comparisons are getting tougher in North America. It’s partially that – this recovery for the Nike brand started last year and it really accelerated (that time),” Cristina Fernandez, Telsey Advisory Group analyst said.
The world’s largest footwear maker also did not beat its gross margin, tallying 44%, compared to its 44.1% estimates. Incremental tariffs in North America impacted product costs in the region.
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