Nike shares up 14%

26 June 2021
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2 min.
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Nike shares up 14%

Nike's report

Nike on Thursday reported a successful end to fiscal 2021 after the close of trading, beating Wall Street expectations. Nike's quarterly revenue nearly doubled to an all-time high of $12.34 billion.

Shares in Nike (NKE) rose 14.1% after the close of trading on Thursday as investors welcomed a record rise in revenue for the global sportswear leader.

Sales of US company Nike rose in every major region, including China, rebutting fears of a boycott by Chinese consumers over tense relations between the countries.

If the upward momentum continues through Friday's trading day, Nike shares could hit a new price high this year.

Nike shares have risen 33.5% over the past 12 months but are down 5.56% since the start of the year as investors have been concerned about the company's position in China, Nike's big fast-growing sales region.

The company's results for the fourth quarter of fiscal 2021 and for the full year ended May 31 showed a stark contrast to last year, when Nike faced offline shop closures around the world and a sharp drop in demand for its products during the pandemic and quarantine restrictions.

Nike's global sales from March to May showed the realisation of pent-up customer demand. The argument for Nike shares was also driven by a revenue growth forecast of 10% for the current fiscal 2022 and the increasingly strong performance of Nike's "direct" online sales through its own online shops and apps.

Nike's report for Q4 fiscal 2021

  • Earnings per share for Nike for Q4 were $0.93, up $0.43 from analysts' estimate of $0.50.
  • Net income for the quarter was $1.5bn, compared with a loss of $790m in Q42021.
  • Nike's quarterly revenue rose 95% to $12.34 billion, compared with an analyst estimate of $11.09 billion.
  • For the full year, NIKE's revenue rose 19% to $44.5 billion and net income jumped 123% to $5.7 billion.

Nike forecast

Nike expects fiscal 2022 revenue to rise about 10% to more than $50 billion. Management also expects earnings to increase as the company sells more products directly to consumers. Nike also expects sales growth in China as it "sees a consistent improvement in sales in the country".

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