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NIKE disappoints with North America sales growth

The firm posted 10% growth in global sales at US$10.3bn but North America sales were only up 5% to US$3.9bn

NIKE - NIKE disappoints with North America sales growth
Raheem Syerlin

NIKE Inc. (NYSE:NKE) dropped in New York after-hours trading on Thursday after the group's quarterly sales in North America did not rack up the expected numbers.

The sportswear giant posted 10% growth in global sales at US$10.3bn for the three months to 30 November, but North America, which provides the bulk of revenues, was only up 5% to US$3.9bn.

Nike's gross profit rose 11% to US$4.5bn compared to the same period last year, while earnings per share jumped 31% to US$0.71. cash in the bank was 10% lower at US$3bn.

Last month the brand severed ties with internet retail giant Amazon.com (NASDAQ:AMZN) to redirect its focus on the direct-to-consumer business.

According to some analysts, the disappointing quarterly results are a sign that the new direct sales strategy will need some time to take hold.

“Not many brands can afford to run up against Amazon but we think Nike is one of those that can,” commented Jasper Lawler, head of research at London Capital Group.

Nike shares dipped 1.5% to US$99.68 in pre-market trading on Friday.

Quick facts: NIKE

Price: 86.79 USD

NYSE:NKE
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Market Cap: $134.96 billion
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