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Nike Jumps on Earnings Beat as Footwear Segment Rebounds

Nike easily topped analysts earnings and revenue expectations for the fiscal fourth quarter.
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Shares of Nike Inc.  (NKE) - Get Report were rising Thursday after the company reported fiscal fourth-quarter results that topped analyst estimates. 

The Beaverton, Oregon-based sportswear giant reported quarterly earnings of 93 cents per share on revenue of $12.3 billion, the latter of which was up 96% compared to the prior year. Analysts were expecting the company to report earnings of 51 cents per share on revenue of $11.03 billion. 

“Nike's strong results this quarter and full fiscal year demonstrate Nike's unique competitive advantage and deep connection with consumers all over the world,” said CEO John Donahoe. 

Nike shares were rising 4.7% to $139.86 per share after hours Thursday. Shares are down 0.9% year to date, compared to a rise of 13.6% in the S&P 500. 

The company's footwear segment reported an 89% year-over-year jump in revenue to $7.947 billion as sales continued to recover from the pandemic. Apparel revenue more than doubled to $3.44 billion.

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“FY21 was a pivotal year for Nike as we brought our Consumer Direct Acceleration strategy to life across the marketplace. Fueled by our momentum, we continue to invest in innovation and our digital leadership to set the foundation for Nike's long-term growth," Donahoe said. 

The company reported a 17% increase in China revenue to $1.933 billion.

Nike's relationship with the Chinese government hit a snag earlier this month after the country's General Administration of Customs accused the company of selling substandard children's clothes that posed potential health issues

The move came amid an ongoing push by Chinese shoppers to boycott Western clothing brands that do not use cotton grown in China's Xinjiang province. 

Earlier this month, Jim Cramer's Action Alerts PLUS charitable trust exited its position in the athletic apparel company, saying the overall portfolio had too much exposure to China.