Nike earnings: US-China trade conflict hasn't hurt business, company says
Nike noted strong sales growth in China in its fourth-quarter earnings report on Thursday as executives downplayed on impact of the ongoing U.S.-China trade dispute on the company's business.
The remarks came shortly after Nike disclosed a rare profit miss. The sports apparel giant reported adjusted earnings per share of 62 cents, falling short of the 66 cents expected on Wall Street, according to Refinitiv data. Fourth-quarter revenue was $10.2 billion, slightly outpacing projections.
Wall Street has been watching for the potential impact to Nike's business as the Trump administration considers further 25 percent tariffs on $300 billion in goods made in China. While Nike manufactures about 25 percent of its products in China, company executives said the brand is well positioned to withstand lingering international trade tensions.
“We have not seen any impact on our business to date," Nike CFO Andy Campion said during an earnings call.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| NKE | NIKE INC. | 75.09 | +1.76 | +2.41% |
Nike generated sales of $4.2 billion in North America, up 8 percent excluding currency changes. Sales in China grew 22 percent to $1.7 billion.
Nike shares seesawed in after-hours trading.
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The Oregon-based company was one of dozens of brands that asked the Trump administration to reconsider further tariffs on goods made in China.