Nike (NKE.N) surpassed Wall Street projections for quarterly revenue on Thursday as China recovered, but margins were under pressure owing to rising expenses and markdowns.
After reversing the strict zero-COVID-19 policy, Greater China sales rose 16%. Regional sales fell in the first three quarters of fiscal 2023.
The company’s Invincible Three and Jordan Mid-1 sold well in China’s rich cities after the lockdowns were lifted.
North America, its largest market, saw sales rise 5%, the weakest in four quarters, as U.S. wholesalers cut back due to high inflation.
Due to lower discretionary spending, retailers have reduced orders and grown more cautious.
The corporation offered higher discounts to sell extra garments and footwear, attracting more customers.
However, margins dropped 140 basis points to 43.6%. Nike’s EPS was 66 cents, missing expectations of 67 cents.
Extended trading dropped business shares by 1.2%.
Fourth-quarter revenue grew to $12.83 billion from $12.23 billion. Refinitiv predicted $12.59 billion.
