Nike Gains as Growth in U.S. Helps Overcome Sales Slump in China

(Bloomberg) — Nike Inc.’s business in China plummeted last quarter, but growth in the U.S. saved its results, boosting the shares.

Revenue in North America rose 12%, helping offset a 20% drop in China, as overall sales slightly surpassed analysts’ expectations. The stock rose as much as 4.8% in after-market trading.

Coming into the report, the world’s largest athletic brand was dealing with production delays mainly from a Covid-19 outbreak in Vietnam that shuttered factories. Those disruptions hurt results in China and other Asian markets, Nike said. But the company got enough goods that were stuck in transit to the U.S. and Europe to fill demand.