Nike predicts online sales boom as it performs better than expected
Nike Inc forecasted sales for the fiscal year on Thursday ahead of Wall Street estimates, betting on its online business, higher demand as lockdowns ease and its proven strategy of limiting product inventory. popular.
Shares of the sneaker maker rose nearly 13% after the bell, as the company also posted better-than-expected quarterly earnings and earnings.
After staying at home for over a year and limiting themselves to casual wear and comfortable pajamas, consumers are back to buying sneakers for running and hiking and getting back to their routine, thanks to quick vaccinations.
There were specific reasons for optimism and confidence, such as returning to sports, CFO Matthew Friend said on a call for results, adding that Nike had already started to see an acceleration in its sports performance activity. .
Nike, based in Beaverton, Oregon, said fiscal 2022 revenue is expected to increase by double digits to exceed $ 50 billion (€ 41.87 billion). Analysts expected revenue of $ 48.46 billion for fiscal 2022, according to Refinitiv.
Growth in the first half is expected to be slightly higher than in the second half, Friend said.
In Nike’s largest market, North America, fourth-quarter revenue more than doubled to $ 5.38 billion and topped analysts’ average estimate of $ 4.31 billion .
Total gross margin increased 8.5 percentage points to 45.8 percent from a year ago, driven in part by the company’s direct consumer activities and lower fees related to cancellations. factory. Analysts had expected a gross margin of 43.96%, according to Refinitiv.
In China, a rapidly growing market for the company, revenue of $ 1.93 billion exceeded expectations of $ 2.22 billion.
Nike and several other clothing companies like Adidas and H&M were attacked on Chinese social media in March after netizens discovered statements the companies had made about the use of forced labor in Xinjiang.
Net income was $ 1.51 billion, or 93 cents per share, for the quarter ended May 31, from a loss of $ 790 million, or 51 cents per share, a year earlier.
Total revenue nearly doubled to $ 12.34 billion from a year ago when the pandemic was at its peak. Analysts had expected revenue of $ 11.01 billion and earnings of 51 cents per share, according to IBES data from Refinitiv. – Reuters