Nike’s fiscal third-quarter results topped analysts’ estimates thanks to robust North America demand. But with lingering uncertainties around inflation, a war overseas and clogged supply chains, Nike is holding off on giving an outlook for the upcoming year. Haris Anwar, senior analyst at Investing.com had the following to say:
"This is a hugely encouraging earnings report from Nike and shows the company is successfully offsetting its sales decline in China by powerful momentum in North America. The rebound in the company's home market also shows that there is enormous pent-up demand for recreational goods after two years’ of pandemic-triggered slowdown.
"One of the biggest drivers of Nike’s long-term growth is the company's accelerated shift to e-tail selling. It has created a direct-to-consumer business that's not just efficient, but also responsible for improving the enterprise's profit margins. Today's report showed that Nike is successfully pursuing this transition with impressive growth.
"As seen in after-hours trading, this positive momentum should help push Nike shares higher, which have been under pressure on concerns that supply-chain issues will continue to linger, hurting both sales and margins. The global appeal of Nike's brands remains strong as does its excellent execution capabilities."