Article written by Lauren Thomas
NKE’s (Nike’s) quarterly earnings and revenue crushed analysts estimates on Tuesday, as the company reported its online sales had grown by 82% while its revenue rebounded in China with their advanced re-opening.
The company also offered a re-vamped outlook for 2021, expecting sales to be up to high single digits to low double digits from a year earlier.
Liverpool FC, one of the most globally-recognized and historically significant football teams in the world, recently signed a partnership deal with Nike which debuted during August, and likely a key factor in the companies future sales success. Liverpool’s online store on the first day of the Nike release had a que in the thousands, with Liverpool supporters having to wait two hours before given access to the online store for a mere 5 minutes.
NKE’s share price jumped more than 8% in after-hours trading.
Nike’s revenue slipped 0.6% to $10.59 billion from $10.66 billion a year earlier, but topped the $9.15 billion expected forecast by analysts.
Sales in China rose 6%, while in North America, Nike’s largest market, saw sales dip by 2%.
Nike’s inventories were up by 15% from a year earlier to a total of $6.7 billion. However, this number was down 9% from the previous quarter, as the corporation continues to manage excess inventory as a result of global store closures.
The COVID-19 pandemic has also accelerated Nike’s digital presence, as the company announced that its digital sales make up at least 30% of its total quarterly sales. Nike had hoped to achieve this target by 2023, one of the few positive developments the pandemic has brought upon the firm.
Nike’s shares as of Tuesday close were up 15% year-to date, with a market capitalization of $182.5 billion.
Works Cited:
https://www.cnbc.com/2020/09/22/nike-nke-reports-fiscal-q1-2021-earnings-beat.html