Nike earnings withstand production issues and slump in China sales, stock gains

Nike earnings withstand production issues and slump in China sales, stock gains

Nike Inc. overcame supply-chain and production challenges to produce better-than-expected profit as the holiday season approached, sending shares higher Monday.

Nike NKE, -2.71% reported fiscal second-quarter earnings of $1.34 billion, or 83 cents a share, up from 78 cents a share a year ago. Sales rose to $11.36 billion from $11.24 billion in the year-ago quarter, thanks to Black Friday sales that occurred just before the quarter ended on Nov. 30.

Analysts on average expected earnings of 63 cents a share on sales of $11.25 billion, according to FactSet. Shares increased more than 3% in after-hours trading following the announcement, after closing with a 2.7% decrease on a rough day for the markets.

Nike has struggled with production and supply-chain issues in the second year of the COVID-19 pandemic. The company previously detailed issues with production in Vietnam amid a spike in the virus in that…

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