Beaverton’s footwear maker Nike beats Q2 revenue estimate on robust N. America demand

by   |  VIEW 1088

Beaverton’s footwear maker Nike beats Q2 revenue estimate on robust N. America demand

Nike Inc., the 56-year-old American multinational corporation engaged in worldwide sales and marketing of footwear, apparel, equipment, accessories and services, said on Monday that the long-hailed sports shoes and apparel manufacturer had handsomely beaten quarterly revenue and profit estimates for its second quarter of fiscal 2022 that ended on November 30, 2021, largely driven by a strong demand of its sportswear in North America.

Aside from that, the Beaverton, Oregon-headquartered world’s No 1 sportswear manufacturer also had forecasted an ease in supply chain issues over next fiscal year. On top of that, following an upbeat quarterly earnings’ report, shares’ prices of Nike Inc rocketed as much as 3.81 per cent on Monday’s post-market trading to $162.96 apiece after closing the session 2.71 per cent lower to $156.96 per share amid a broad-based decline in the day’s Wall Street.

Nike beats Q2, 2022 profit forecast

Aside from that, Nike Inc’s robust Q2, 2022 quarterly earnings’ report came against the backdrop of a 12 per cent leapfrog in sales at its North American unit, which happens to be the largest market for Nike Inc., while several analysts were quoted saying followed by release of the report that a vigorous reopening of US economy alongside an acceleration in vaccination drive earlier in the year had encouraged shoppers to race back to in-store shopping.

Apart from that, an ease in pandemic restriction also had heightened up demands of sneakers for running and hiking, suggested industry analysts. Meanwhile, addressing to a pluperfect second-quarterly earnings’ report of Nike Inc., a retail analyst at Jane Hali & Associates, Jessica Ramirez said, “Nike is doing well to get in as much inventory as possible.

Long term, I don't see the momentum going away from the company because the products are so highly coveted by consumers”. According to Nike Inc Q2, 2022 earnings’ report, the American multinational footwear and apparel manufacturer’s overall revenues jumped 1 per cent to $11.36 billion over the quarter that ended on November 30, handily beating an analysts’ estimate of $11.25 billion, IBES data from Refinitiv had unfurled.

On top of that, Nike’s net operational profit soared to 83 cents per share, beating an analysts’ estimate of 63 cents a share.