With a market value of more than $225 billion, Nike's e-commerce sales soared 59%!

In North America, shipments were delayed by more than three weeks and revenue fell 10% year-over-year, Nike said .

But Nike continues to see momentum online. Its e-commerce sales surged 59% during the period .

Nike on Thursday reported higher third-quarter profit, even though sales growth was hurt by widespread port congestion in the United States and store closures in Europe.

Despite the uncertainty surrounding the global health crisis, Nike said it expects shutdowns in Europe to begin to ease in April and delivery windows in North America to gradually improve over the rest of the year. Its shares fell nearly 4% in after-hours trading .

Total sales rose to $10.36 billion from $10.1 billion a year earlier . That was below analysts' forecast of $11.02 billion.

Nike said that in North America, revenue fell 10% year-on-year as shipping delays dragged on for more than three weeks . This also means that sales at its wholesale partners have been affected because businesses such as department stores and sporting goods stores have not received shipments in time. They may now need to discount some items to make more space on their shelves in case they are needed.

Backlogs at West Coast ports, a global shortage of shipping containers and a U.S. truck driver shortage remain headaches for businesses ranging from Nordstrom to Urban Outfitters to Peloton, and many said they expect those problems to persist into the second half of the year.

Nike said that in Europe , the Middle East and Africa, where physical store sales have fallen due to pandemic -related closures and restrictions, digital sales in those markets have grown 60% in the recent period. The company said about 60% of its stores in the region were open today, some with reduced hours.

Nike provided an outlook for the current quarter and fiscal year, expecting inventory shipping times in North America to slowly improve from now on, while lockdowns in Europe will ease by April.

It forecast fiscal 2021 revenue to rise 10% from the previous year . Analysts had been expecting full-year revenue to rise 15.9%, according to Refinitiv data.

The company expects fourth-quarter sales to grow 75% year over year as it navigates a period in which 90% of its owned stores have been closed during the pandemic .

Live streaming drives online sales

Nike's direct-to-consumer business grew 20% year-over-year to $4 billion. Online sales for the Nike brand surged 59% as consumers looked to add new sneakers and athletic gear to their wardrobes even as they were stuck at home. The company said it reached $1 billion in sales in North American online pre-orders for the first time.

“Longer term, we continue to see the value of a more direct digital strategy, which will bring greater potential to Nike,” Chief Financial Officer Matt Friend said.

Nike's e-commerce business is still expected to account for at least 50% of its sales in the next few years , the company said . Nike has been investing more in digital, including the popular SNKRS app, to reach younger consumers online and reduce its reliance on third-party partners.

Naik said it has recently successfully tested new live-streaming formats , which are more popular in Asia than in the U.S. But other companies, including Nordstrom and Walmart, are also experimenting in the U.S. Nike said in the third quarter that it had started live streaming in Japan , Germany and Italy.

“We’re seeing incredible engagement with this live interaction, with average views doubling,” said CEO John Donahoe.

Nike shares have risen more than 110% in the past 12 months as of Thursday's close . Its market value is more than $225 billion.

E-commerce

Nike

North America