New York (CNN Business)Nike beat analysts’ revenue expectations for its first fiscal quarter by more than $1 billion Tuesday, signaling the sportswear giant is making a healthy comeback from the pandemic.
The company reported diluted earnings per share of $0.95 for the three months ended August 31. Revenue was $10.6 billion, down 1% year-over-year. Wall Street analysts had projected earnings per share of $0.47 on revenue of $9.14 billion, according to Refinitiv estimates. Nike (NKE)’s stock jumped 8% in after-hours trading Tuesday following the report.
While many footwear and apparel companies, including Nike, were hit by store closures and a decline in in-store shopping earlier in the year, Nike’s investments in digital sales boosted sales in the latest quarter. In recent years, Nike has shifted its focus from selling through third-party retailers to leaning on its own direct-to-consumer sales channels and e-commerce business, which positioned it to benefit as more consumers have turned to buying online. Read More
The company said its Nike Brand digital sales grew 82% during the quarter, including triple-digit growth in the Europe, Middle East and Africa market. “Nike is recovering faster based on accelerating brand momentum and digital growth, as well as our relentless focus on normalizing marketplace supply and demand,” Nike CFO Matt Friend said in a release.
Source: edition.cnn.com