More than a third of Nike’s stores in markets across Europe, the Middle East, and Africa, have still yet to poen. Particularly in Europe, France and Germany are both experiencing an increasingly sharp rise in Covid-19 infections.
In Friday’s premarket trading, there has been a revenue miss in the February quarter due to supply chain challenges. This in particular has sent Nike shares down 2.5%.
Nike’s revenues for Q3 rose 3% to $10.4 billion, This was a miss of more than 5% from the consensus estimate of $11.02 billion.
The shoe and apparel maker blamed this on supply chain challenges. These include global container shortages and U.S. port congestion. The flow of inventory and timing of wholesale shipments were affected by these.
A shortage of containers and port congestion were most felt on North American operations. On these, revenues declined 11%.
Albeit, the company said it is now more confident in its full-year outlook for revenue. Moreover, it predicts a “low to mid-teens” growth against the prior year.
The firm also expects gross margin expansion for the full year up to 75 basis points. One basis point equates to one hundredth of a percentage point.
Nike Direct’s direct-to-consumer initiative also showed healthy growth, rising 15% on a currency-neutral basis. Nike Digital led the growth of more than 50%.
Notably, online revenues from North American operations topped $1 billion, for the first time.
FedEx, Lyft Up in Premarket, Nike Falls
Meanwhile, in stock market news, FedEx stock rose 5.1%. This came after the delivery firm said its quarterly profit rose more than expected on higher prices. This was also due to surging volume from e-commerce deliveries during the holiday shipping season.
Lyft stock added 0.2% after the ride-hailing company reported that last week was its biggest since March 2020. It’s ride volume reached a record for the year.
Nike stock fell 2.2% after quarterly sales from the world’s largest shoe maker missed estimates. That was due to shipping issues and a pandemic-related slump at brick-and-mortar stores. Its full-year revenue forecast was also disappointing.
Furthermore, AstraZeneca ticked up 0.4%. Both European and British medical regulators recommended that its Covid-19 vaccine should continue to be rolled out despite reports of blood clots. Its Covid-19 vaccine was developed with Oxford University.
Amazon stock gained 0.8% after the company signed a deal with the NFL. Now an exclusive partner for the league’s “Thursday Night Football” games, this is the first time a streaming service will carry an exclusive package of games.