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Nike Reports Strong Q2 Earnings While Increasing Full-Year Sales Forecast

By John F. Heerdink, Jr.

Sportswear giant, NIKE, Inc. (NKE) reported strong fiscal Q2 earnings, as its digital sales witnessed a boost amid the pandemic as people have been logging into Nike’s workout and store apps driving significantly higher online sales all year.

Revenue increased about 9% to $11.24 billion in the second quarter ending Nov 30 beating analyst estimate of $10.56 billion. The company reported a 12% increase in profit to $1.25 billion, or 78 cents per share, beating analysts’ expectations of 62 cents per share. The company’s brand digital sales jumped 84% in fiscal Q2, with triple-digit growth in North America – its biggest market.

Selling and administrative expenses dropped 2% to $3.3 billion, further boosting profit, as the pandemic held Nike from spending as much on marketing its brands and sports events.

The company’s North American sales rose 1% in Q2 to $4 billion. Europe, Middle East & Africa sales increased 17% to $2.96 billion. Greater China sales soared 24% to $2.3 billion. Sales remained flat at $1.47 billion for the Asia Pacific & Latin America.

Nike expects annual revenue growth in the “low-teens,” up from its previous forecast of a high single-digit to low double-digit increase.

NIKE, Inc. (NKE) is the world’s top designer, marketer, and distributor of athletic footwear, equipment, apparel, and accessories. The Beaverton, Oregon-based company offers products for a wide variety of sports and fitness activities. To learn more about NIKE, Inc. (NIKE) and to continue to track its progress please visit the Vista Partners NIKE Coverage Page.

Vista Partners LLC (”Vista”) is a California Registered Investment Advisor based in San Francisco. Vista delivers timely and relevant insights via the website: www.vistapglobal.com with daily stories, weekly market updates, monthly macroeconomic newsletters, podcasts, & Vista’s proprietary equity and market research to help you stay informed and stay competitive. Vista’s mission is to invest partner capital while arming investors with a comprehensive global financial perspective across all market sectors. Vista also seeks to provide select issuers with actionable advice regarding fundamental development, corporate governance, and capital market directives.
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(Read Original Story: Nike raises full-year sales forecast, posts surprise earnings growth in Reuters)


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