Nike Beats Estimates After Growth in Digital Sales and China
NIKE, Inc. (NKE) - Get NIKE, Inc. Class B Report results topped analysts' estimates for its fiscal second quarter after the closing bell Friday, driven by surging online sales and 24% growth in China.
The athletic apparel and equipment maker said it made 78 cents a share on $11.2 billion in revenue. In the same period a year ago, the company posted earnings of 70 cents a share on sales of $10.3 billion.
Nike had been expected to report adjusted net income of 63 cents a share, on sales of $10.6 billion, based on a FactSet survey of 31 analysts.
The stock has risen 20.2% since the company last reported earnings on Sept. 22.
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"Our second-quarter revenue performance was impacted by strong NIKE Brand digital growth of 84 percent, offset by lower revenue in our wholesale business and NIKE-owned stores," said John Donahoe, president and CEO, in a statement.
"During the quarter, we experienced temporary [store] closures in geographies affected by rising COVID-19 cases; however, more than 90% of our owned stores are open today, with some operating on reduced hours. We continue to experience year-over-year declines in physical retail traffic in North America, EMEA and APLA due to COVID-19 impacts and safety-related measures, partially offset by higher conversion rates."
The company said digital sales increased 84% driven by triple-digit gains in the North American region. The company reported revenue growth of 24% for the quarter in the greater China region.
Shares of Nike rose in after-hours trading Friday. Shares gained $4.87, or 3.5%, to $144.19 in late trading. During the regular session, the stock fell 2.3%.
Nike is a holding in Jim Cramer's Action Alerts PLUS member club.
