The company’s stock rose nearly 6% in extended trading to $137.90 after the company announced its results on Monday.
Factory closures in Vietnam, the largest manufacturing hub for Nike, had significantly impacted the company’s ability to meet demand for Nike products, in addition to Converse and Jordan sneakers. However, all of the Nike factories in the country are now operational again, with footwear and apparel production reaching pre-closure volumes, Nike Chief Financial Officer, Matthew Friend, said.
That said, shipping delays remain a cause for concern, especially in the North America market where transit times have worsened, he added.
The company’s revenue increased by 5% to $10.87 billion in the quarter that ended on February 28, 2022. That was higher than the $10.59 billion analysts had expected, according to Refinitiv. Nike earned 87 cents per share, which was 16 cents higher than analysts’ expectations.
While the company benefited from increased demand in the U.S. and Canada, its business in China suffered as it prioritized sending supplies to North America over the Chinese market. Revenue in Greater China was down by 8% in Q3.