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People walk past a store of the sporting goods retailer Nike Inc at a shopping complex in Beijing March 25, 2021. — Reuters pic
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NEW YORK, March 22 — 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 five percent in Greater China to US$2.2 billion (RM9.2 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 four percent from the prior year, even as revenues rose five percent to US$10.9 billion.
Shares of Nike jumped 5.9 per cent to US$137.85 in after-hours trading. — AFP