Wednesday, July 6

Nike leaps 13% after smashing earnings forecasts and boosting its sales-growth forecast

Customers lined up outside the Nike flagship store on the opening day at Wangfujing Street on January 20, 2021 in Beijing, China.

Shares of Nike soared as high as 13.5% early on Friday after the retail giant smashed earning expectations and boosted its outlook for 2022.

The stock soared to $151.68, a record high that would bring Nike’s year-to-date gains to roughly 8%.

Nike’s earnings per share of $0.93 were significantly higher than $0.51 expected by analysts. Revenue came in at $12.34 billion, higher than the $11.01 billion expected, and up 21% from the fourth quarter of 2019.

In North America, the retailer’s largest market, sales came in at $5.38 billion, up 29% on a two-year basis. Sales more than doubled from a year earlier, when the pandemic squashed the retail industry. Additionally, digital sales rose 147% compared to the same time period in 2019.

Investors also cheered Nike’s boosted revenue outlook. The Oregon-based company expects revenue to grow past $50 billion in 2022. Analysts had expected revenue of $48.46.

“FY21 was a pivotal year for Nike as we brought our Consumer Direct Acceleration strategy to life across the marketplace. Fueled by our momentum, we continue to invest in innovation and our digital leadership to set the foundation for Nike’s long-term growth,” Nike CEO John Donahoe said in a press release.