New York City, NY: Nike expects full-year sales to exceed Wall Street expectations due to online business gambling, increased demand from high-volume vaccination, and inventory restriction strategies for popular products.
Nike’s share price rose nearly 13% after Bell. This is because Nike’s quarterly earnings and earnings were also better than expected.
Chief Financial Officer Matthew Friend said in a statement that there were clear, optimistic, confident reasons, such as returning to sports, adding that Nike has already begun accelerating its sports performance business.
Beaverton, Oregon-based Nike said fiscal 2022 sales are projected to grow in the low double digits and exceed $ 50 billion. According to Refinitiv, analysts expected revenue of $ 48.46 billion in 2022.
Growth in the first half is expected to be slightly higher than growth in the second half, according to Friend.
In Nike’s largest market, North America, fourth-quarter revenue more than doubled to $ 5.38 billion, ahead of the average analyst’s estimate of $ 4.31 billion.
Gross profit margin increased 8.5 points year-on-year to 45.8% due to lower costs associated with the company’s direct consumer business and factory cancellations. According to Refinitiv, analysts expected a gross profit of 43.96%.
In the fast-growing Chinese market, revenue of $ 1.93 billion was below expectations of $ 2.22 billion.
Nike, along with Adidas, H & M and several other apparel companies, faced a backlash on Chinese social media in March following a statement on the use of forced labor in the Xinjiang Uygur Autonomous Region.
Nike’s net income for the quarter ended May 31 was $ 1.51 billion (93 cents per share), compared to a loss of $ 790 million (51 cents per share) in the year-ago quarter.
Gross revenue almost doubled from last year, when the pandemic peaked, to $ 12.34 billion. Analysts expected $ 11.10 billion in revenue and 51 cents per share, according to Refinitiv’s IBES data.
Nike’s online sales, post-blocking demand gains 13% share
Source link Nike’s online sales, post-blocking demand gains 13% share