Nike Posts Higher Sales in U.S., China

By Kimberly Chin 

Nike Inc. posted a 10% jump in sales in the latest quarter, even after the sportswear giant decided to stop selling through Amazon.com Inc. and faced criticism for its support of disgraced running coach Alberto Salazar.

Revenue in the North American market, which accounts for the majority of Nike's sales, rose 5% from a year ago. The gains were driven by footwear, as apparel sales were flat. The fastest-growing region was Greater China, where revenue jumped 20% from a year ago.

Nike's shares, which have climbed 36% this year, were off about 1% at $100.30 in after-hours trading.

In November, Nike said it would stop selling its clothes and sneakers directly on Amazon to focus on its own apps and stores. The company sold a relatively small amount of goods on the site, though many third parties resell Nike products on the site. Instead, Nike has tried to drive consumers to its own shopping apps and reduce its reliance on traditional retailers.

For the quarter ended Nov. 30, Nike reported a profit of $1.12 billion, or 70 cents a share, up from $847 million, or 52 cents a share, a year ago. Overall sales were $10.3 billion for the quarter and exceeded analysts' estimates of $10.1 billion.

During the quarter, Nike came under scrutiny for its silence on the Hong Kong protests and its support for Mr. Salazar, who received a four-year ban for doping. Mr. Salazar has said he planned to appeal the sanction. He also has disputed allegations from some former female athletes that he mistreated them.

On Oct. 1, Chief Executive Mark Parker sent an email to Nike employees saying the company would never condone cheating and underscoring his support for Mr. Salazar. A few days later, Mr. Parker said the company was disbanding the Nike Oregon Project, an elite running team Mr. Salazar coached.

About two weeks later, Mr. Parker said he would step down as CEO in January and become executive chairman. John Donahoe, a former eBay Inc. chief executive and a current member of Nike's board, will take over as CEO in January.

Write to Kimberly Chin at [e-mail]

(END) Dow Jones Newswires

December 19, 2019 17:29 ET (22:29 GMT)

Copyright (c) 2019 Dow Jones & Company, Inc.