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Q3 results fell short of the mark for Nike

Miguel A. Rodriguez
Miguel A. Rodriguez
24 March 2021
US port congestion and truck drivers shortage hurt Nike's sales

In the third quarter of 2021, Nike reported an EPS of 90 cents per share, on revenues of $10.36 billion. While the EPS topped the 76 cents expected, the same cannot be said about the revenue, which failed to reach the $11.02 billion forecasted.

The US's revenue came in 10% lower than the same period last year because of the shipment delays that the company said have been dragging for more than three weeks. The delays also affected its partners, department stores and outlets. However, Nike is not the only company to have such issues. Peloton, Nordstrom, and Urban Outfitters are hurt by the truck driver shortage in the US and the container shortage in West Coast ports.

On the other side of the world, in Greater China, sales climbed 51%. In Europe, the Middle East, and the Africa region, same-store sales fell considerably due to restrictions and closures, but on the other hand, online sales surged 60% in the past three months.

For the future, Nike expects its sales to go up 75% year-over-year. The analysts are forecasting a 64.3% increase.

Following the mixed news, Nike stock price lost 4% in pre-market trading.


This information/research prepared by Miguel A. Rodriguez does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.The research analyst in not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation, or particular financial needs before making a commitment to invest. The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided. 

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Miguel A. Rodriguez
Miguel A. Rodriguez
Financial Writer

Miguel worked for major financial institutions such as Banco Santander, and Banco Central-Hispano. He is a published author of currency trading books.