Nike Reports a Blow Out Fourth Quarter

Athletic shoe and apparel company Nike reported its fourth quarter financial results this week and they were quite impressive.

The company beat estimates in earnings and sales and also booked record revenue in North America.

Earnings and sales for the quarter were fueled by record revenue in its largest market, North America.

Digital sales also saw a big boost at 41% compared to the previous year and was up 147% compared with the same period in 2019.

The company’s wholesale business also boomed after being mostly inactive a year earlier during the pandemic when stores had been locked down.

Looking ahead, Nike also projected a promising sales outlook for the upcoming year.

Shares of Nike were up over 12% in after-hours trading on Thursday as Wall Street digested the numbers.

For the quarter ended May 31st, Nike reported earnings per share of 93 cents compared to only 51 cents expected, per Refinitiv. Revenue at $12.34 billion was better than the $11.01 billion that was expected, also per Refinitiv.

Net income rose to $1.5 billion, or 93 cents per share, compared with a loss of $790 million, or 51 cents per share, a year earlier.

Digital sales were up 41% compared with the prior year and rose 147% compared with the same period in 2019.

North American sales more than doubled to a record $5.38 billion. The region’s sales were up 29% on a two-year basis.

In Greater China, sales were up just 17% at $1.93 billion.

“Building on our 40-year history in Greater China, we continue to invest in serving consumers with the best products Nike has to offer in locally relevant ways,” CFO Matt Friend stated.

“Fueled by our momentum, we continue to invest in innovation and our digital leadership to set the foundation for Nike’s long-term growth,” said Nike CEO John Donahoe.

Looking ahead at fiscal 2022, Nike is expecting revenue to grow a low double-digit percentage, surpassing $50 billion. Analysts expected annual revenue of $48.5 billion.

“It’s important to note as we normalize our post-pandemic business and continue to reshape the marketplace, we do not expect quarter-by-quarter growth to be linear,” said Friend.

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.