Nike shares soar as sales top expectations thanks to digital growth, strength in China

Nike‘s quarterly earnings and revenue trounced analysts’ estimates, the company reported Tuesday, as its online sales soared 82%. 

Parents were seen stocking up on sneakers for their kids this back-to-school season, and business finally started to pick back up overseas amid the coronavirus pandemic. 

“In this dynamic environment, no one can match our pace of launching innovative product and our brand’s deep connection to consumers,” CEO John Donahoe said in a statement. 

Its stock jumped more than 8% in after-hours trading. 

Here’s how the company did compared with what analysts were expecting, based on Refinitiv data: 

• Earnings per share: 95 cents vs. 47 cents, expected 
• Revenue: $10.59 billion vs. $9.15 billion, expected 

Its net income climbed to $1.52 billion, or 95 cents per share, compared with $1.37 billion, or 86 cents per share, a year earlier. That was better than the 47 cents per share analysts were expecting. 

Nike’s revenue for the period ended Aug. 31 fell 0.6% to $10.59 billion from $10.66 billion a year earlier. That also came in better than the $9.15 billion forecast by analysts. 

Sales in China rose 6%, it said, while sales in North America were down 2%. 

Nike at the end of June reported an unexpected loss, as its revenue tumbled 38% year-over-year with a number of its stores temporarily shut. 

The company said Tuesday that a majority of its stores were back open during the fiscal first quarter. Still, traffic in stores is down from a year earlier, it said, in part due to Covid-19 “safety related measures.” 

Nike shares as of Tuesday’s market close are up about 15% year-to-date. The company has a market cap of $182.5 billion. 

Find the full earnings release from Nike here. 

This story is developing. Please check back for updates.