Nike shares jump after hurdling factory setbacks

STORY: Shares of Nike jumped on Tuesday, after the world's biggest sports shoe and apparel maker beat third-quarter revenue and profit estimates.

The company also said its manufacturing issues in Asia related to the global health crisis, which had pinched sales over the past six months, were now behind it.

Factory closures last year in Vietnam, where about half of Nike's footwear is made, and the slow return to normal production in the country led to a shortage of Nike, Jordan and Converse sneakers across most markets.

On Monday's earnings call, Nike's Chief Financial Officer Matthew Friend said all Nike factories in Vietnam are now operational, with total footwear and apparel production in line with pre-closure volumes.

That was also good news for other retailers with business in the region, including Adidas and H&M, shares of which also rose on Tuesday.

Nike's North America revenue rose 9% in the third quarter, helped by a return to school sports and price increases.

But Nike said a snarled supply chain was still posing challenges, especially in North America, where transportation times have worsened.