People are socializing again and updating the wardrobe.
Photo: Peter Patel / Pexels
People are spending their money again, and Nike is benefiting from shoppers acquiring trendy sports shoes and sweatshirts to wear on their return to normalcy.
Shares of the sportswear company closed this Friday with a rise of more than 15%, reaching an all-time high, after the shoe manufacturer forecast 2021 sales above $ 50 billion, published CNBC.
Business is recovering for Nike in North America after the coronavirus pandemic and in China sales appear to be improving, despite threats to boycott Western brands for their comments expressing concern about the alleged forced labor in Xinjiang.
“These are times when strong brands can get stronger, and each quarter this reality becomes even clearer,” said Nike CEO John Donahoe.
Nike is receiving the benefits from buyers who are spending money again on trendy sneakers and sweatshirts to wear as more people start socializing again. It should be noted that its Jordan brand has been working very well among its customers.
In the last three months through May, Nike’s total revenue nearly doubled to $ 12.34 billion from $ 6.31 billion a year earlier, beating analyst estimates by more than $ 1 billion.
Turning to North America, Nike’s largest market, sales more than doubled in the region to a record $ 5.38 billion.
For Cristina Fernández, analyst at Telsey Advisory Group, “Nike is benefiting from its closer connections with customers through its membership program, higher total sales price, higher data usage and a smarter wholesale model with strong partners like Foot Locker. “
“The company is emerging from the Covid period into the biggest (profit and loss) evolutions in our hedging universe,” said Credit Suisse analyst Michael Binetti.
Nike shares closed up 15.5% at $ 154.35. During the trading day, the shares reached a historical intraday maximum of $ 154.59.
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