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
SHARE
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.

Nike
SHARE