Nike Doubles Profit Estimates on Strong Digital Sales - TheStreet

Nike Doubles Profit Estimates on Strong Digital Sales

Nike reported fiscal-first-quarter profit more than double Wall Street's estimate. Digital sales increased in both North America and China.
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Nike  (NKE) - Get Report shares shot up after hours Tuesday after the sports-apparel company reported fiscal-first-quarter results that topped analyst estimates. 

For the quarter ended Aug. 31 the Beaverton, Ore., company reported net income of 95 cents a share against 86 cents in the year-earlier quarter. 

Revenue slipped 0.6% to $10.59 billion from $10.66 billion.

Analysts surveyed by FactSet were expecting the company to report earnings of 41 cents a share, or an adjusted 47 cents, on revenue of $9.13 billion. 

The company's pace of innovation, the brand’s "deep connection to consumers," and its acceleration of digital sales efforts "are unlocking Nike's long-term market potential," Chief Executive John Donahoe said in a statement. 

Nike brand digital sales rose 82% overall with double-digit increases across North America and greater China and a triple-digit rise in Europe-Mideast-Africa. 

Inventories rose 15% to $6.7 billion in the quarter from a year earlier, but were down 9% from the previous quarter as the company worked through the backlog caused by the coronavirus.

Nike reported revenue of $4.23 billion in North America and $1.78 billion in China. 

Europe-Mideast-Africa revenue rose 5% to $2.9 billion while Asia Pacific and Latin America revenue fell 18% to $1.01 billion.  

Earlier this week, Jim Cramer added Nike to his Action Alerts PLUS portfolio with the AAP team saying that Nike is a "blue-chip athletic footwear and apparel maker with one of the most recognizable brands of all time."

Nike shares at last check rose 8.6% to $126.97. They closed Tuesday's regular trading session up 3.1% at $116.87. 

Nike is a holding in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells NKE? Learn more now.