Nike Shares Jump on Earnings and Sales Surprise

Nike (NKE) shares jumped over 13% in pre-market buying and selling after the athletic attire maker posted earnings and income that each topped analyst expectations, although inventories stay excessive.

Nike reported fiscal second quarter web earnings of $1.3 billion, or $0.85 a share, in contrast with analyst estimates of $0.64 a share. Income was $13.3 billion, up 17% from a yr in the past and forward of expectations of $12.6 billion. In a convention name with analysts, CFO Matthew Good friend mentioned he expects annual income to develop within the “low teenagers” this yr. 

Additionally within the convention name, CEO John Donahoe famous a rebound of enterprise in China and enhancing stock ranges due to robust client demand. Nonetheless, increased prices squeezed margins for Nike, and whereas inventories rose on an annual foundation, they declined from the earlier quarter.

Nike gross sales in China, its third-largest market by income, dropped by 3% in comparison with final yr, because the nation contends with lingering pandemic lockdowns and a slowdown in retail spending. Nike mentioned direct gross sales had been up 16% for the quarter, whereas digital gross sales rose 25%.

Shares of Nike are down about 38% year-to-date.


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