Jun 24 (.) – Nike Inc’s quarterly revenue topped Wall Street estimates as Americans emerging from lockdown triggered by the pandemic spent more on footwear and clothing, sending its shares soaring 4%.
After staying home for more than a year and limiting the wardrobe to comfortable clothing, consumers returned to buying running and hiking shoes to regain their routines, thanks to the rapid pace of vaccination.
In North America, Nike’s largest market, revenue more than doubled to $ 5.38 billion and exceeded the average analyst estimate of $ 4.31 billion. In Greater China, a fast-growing market for the company, revenue was $ 1.93 billion and fell short of expectations of $ 2.22 billion, as consumers boycotted several Western brands over the controversy over Xinjiang.
Nike’s net profit reached 1.51 billion, or 93 cents a share, for the quarter ended May 31, compared with a loss of 790 million, or 51 cents a share, a year earlier.
Total revenue rose to $ 12.34 billion for the fourth quarter from $ 6.31 billion a year earlier, when the pandemic was at its peak. Analysts were expecting $ 11.01 billion, according to IBES data from Refinitiv.
(Report by Nivedita Balu in Bengaluru. Edited in Spanish by Rodrigo Charme)