New York, NY: Nike expects annual sales to exceed Wall Street expectations due to online gambling, increased demand for high-volume vaccinations, and inventory restriction strategies for products popular.
Nike’s stock price rose nearly 13% after Bell. Indeed, Nike’s earnings and quarterly earnings were also better than expected.
CFO Matthew Friend said in a statement that there were clear, optimistic and confident reasons such as returning to the sport, adding that Nike had already started to ramp up its athletic performance business.
Nike, based in Beaverton, Oregon, said fiscal 2022 sales are expected to increase in double digits and exceed $ 50 billion. According to Refinitiv, analysts were forecasting revenue of $ 48.46 billion in 2022.
According to Friend, growth in the first half is expected to be slightly higher than in the second half.
In Nike’s largest market, North America, fourth-quarter revenue more than doubled to $ 5.38 billion, ahead of the analysts’ average 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 activities and factory cancellations. According to Refinitiv, analysts were expecting a gross margin 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 clothing companies, faced a backlash on Chinese social media in March following a statement on the use of forced labor in the Uyghur Autonomous Region of Xinjiang.
Nike’s net income for the quarter ended May 31 was $ 1.51 billion (93 cents per share), compared with a loss of $ 790 million (51 cents per share) in the previous year quarter.
Gross revenues nearly doubled from last year, when the pandemic peaked, to $ 12.34 billion. Analysts were expecting $ 11.10 billion in revenue and 51 cents per share, according to IBES data from Refinitiv.
Nike’s online sales and post-block demand gain 13% share
Source link Nike online sales, post-block demand gains 13% share