NEW YORK CITY, New York: Betting on its online business, higher demand thanks to mass vaccinations and its strategy of limiting stocks of popular products, Nike expects annual sales to exceed Wall Street estimates.
Nike shares rose nearly 13% after the bell, with the company also posting better-than-expected quarterly earnings and earnings.
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. 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 North America, Nike’s largest market, fourth-quarter revenue more than doubled to $ 5.38 billion and was above analysts’ average estimate of $ 4.31 billion.
Total gross margin increased 8.5 percentage points to 45.8% from a year ago, driven in part by the company’s direct activities with consumers and lower fees related to cancellations. factories. Analysts had expected gross margins of 43.96%, according to Refinitiv.
In its fast growing market of China, revenues of $ 1.93 billion exceeded expectations by $ 2.22 billion.
Nike, along with Adidas, H&M and several other clothing companies, faced a backlash on Chinese social media in March over their statements about the use of forced labor in Xinjiang.
Nike’s net income was $ 1.51 billion or 93 cents per share for the quarter ended May 31, compared with a loss of $ 790 million or 51 cents per share the year before.
Total revenues nearly doubled to $ 12.34 billion from last year 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.
