Oregon’s Nike raises full-year sales forecast; shares snowball to record

On Friday, shares' prices of Nike Inc. sky-rocketed as much as 15 per cent following reveal of an upbeat quarterly earnings' report for fiscal Q4, 2021, that ended on

by Sourav D
Oregon’s Nike raises full-year sales forecast; shares snowball to record

Nike Inc., the Beaverton, Oregon-headquartered American multinational footwear manufacturing titan, had raised full-year sales forecast above $50 billion and beaten Wall Street estimates for quarterly profits and revenues by a wider margin, mostly sailing on the back of a higher domestic demands as pandemic-led restriction eases.

Aside from that, followed by an upbeat quarterly earnings’ report coupled with a riant raise in full-year sales estimate, shares’ prices of the American multinational sneaker giant had spiked to a record closing high, wrapping up the day nearly 15 per cent higher to $153.36 a share.

In point of fact, Nike Inc’s quarterly earnings’ report came in well above analysts’ projections as pandemic-wary Americans have stepped outside again for in-store shopping following an acceleration in vaccination drive, nonetheless, Nike Inc.’s online sales soared as well as life appears to be returning to a post-pandemic new normalcy in the North America with more consumers returning to their routines, sending footwears for running and hiking on the topside of a demand-cohort.

Nike Inc. beats analysts forecast for revenues; shares hit record

According to Nike Inc.’s quarterly earnings’ result for fiscal fourth quarter of the year that ended on May 31, the Oregon-based sneaker maker had been expecting its 2022-revenues to grow by low double-digit percentage points, storming past a whopping $50 billion for the first time and beating an analysts’ forecast of $48.46 billion, IBES data from Refinitiv had unveiled.

Besides, in Northern America, the largest market for Nike Inc, fourth-quarter revenues had nearly doubled to $5.38 billion, however, the sportswear maker had grossed a revenue of $1.93 billion in China, missing an analysts’ expectation of $2.22 billion.

Nonetheless, Nike’s net income in the latest quarter rose to $1.51 billion or 93 cents per share compared to a loss of $790 million or 51 cents a share clocked at the same time a year earlier, while the Beaverton-based sneaker manufacturer’s total revenue had nearly doubled up to $12.34 billion on an annualized basis.

Meanwhile, Nike Chief Financial Officer Matthew Friend was quoted saying in a post-earning call with the reporters that the company had already begun to witness an improvement at its sports performance business adding that there were definite reasons for optimism and buoyancy.