Strong pricing boosts Nike results despite China hit

[NEW YORK] Strong product pricing helped Nike offset a hit from lower sales in China, enabling the sporting goods giant to report better-than-expected quarterly profits on Monday.

The apparel and sneaker company scored increased sales in three of its four operating regions, led by Asia Pacific/Latin America and North America, the company's biggest source of revenues.

Nike said its gross profit margin increased from the same period of last year due to more full-priced sales, partly offset by elevated freight and logistics costs.

But revenues fell 5 per cent in Greater China to US$2.2 billion. The region - which has seen activity constrained by Beijing's "zero tolerance" policy on Covid-19 - also saw the biggest drop in profits before interest and taxes.

The company reported total profits of US$1.4 billion for the quarter ending February 28, down 4 per cent from the prior year, even as revenues rose 5 per cent to US$10.9 billion.

Shares of Nike jumped 5.9 per cent to US$137.85 in after-hours trading. AFP