A man walks in front of Nike products exhibit, on February 22, 2021 in New York City.
John Smith | Corbis News | Getty Images
Nike on Thursday reported fiscal fourth-quarter earnings and sales that topped analysts’ estimates, fueled by record revenue in its largest market, North America.
The company continues to benefit from consumers seeking out comfortable clothing to wear for workouts but also around the house. Even as people return to schools, offices and other social settings, many are still searching for relaxed options like sneakers and stretchy pants.
Nike also saw a boost to its wholesale business — something that was largely inactive a year earlier during the Covid pandemic, when shopping malls and department stores had to temporarily shut their doors and put orders for merchandise on pause.
Nike shares jumped more than 4% in after-hours trading.
Here’s how the company did during its fiscal fourth quarter, compared with what analysts were anticipating, using Refinitiv estimates:
- Earnings per share: 93 cents vs. 51 cents expected
- Revenue: $12.34 billion vs. $11.01 billion expected
Nike’s net income for the period ended May 31 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. That topped analysts’ forecast of 51 cents per share, using Refinitiv data.
Total revenue rose to $12.34 billion from $6.31 billion a year earlier, topping estimates for $11.01 billion.
In North America, Nike’s biggest market, sales more than doubled to a record $5.38 billion as the company surged from a year earlier when the Covid pandemic was hitting the retail industry the hardest. The region’s sales were up 29% on a two-year basis.
In Greater China, sales were up just 17% at $1.93 billion. Typically one of the fastest-growing markets for Nike, consumers in China have threatened a boycott after some Western brands like Nike expressed concern about allegations of forced labor in Xinjiang.
Digital sales were up 41% compared with the prior year, and rose 147% compared with the same period in 2019.
“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.
Find the full earnings press release from Nike here.