Nike’s share price was also boosted by a better-than-expected sales guidance for 2022 in expectations of continued performance in its women’s category, apparel unit, and Jordan brand.
The company reported earnings per share of 93 cents, or $1.5 billion, up from analysts’ expectations of 51 cents per share. Nike earned $12.34 billion in revenue for the quarter that ended on May 31, compared to Wall Street estimates of $11.01 billion, and up from $6.31 billion in the year-ago period.
Nike performed particularly well in North America, its largest market, where sales more than doubled to a new high of $5.38 billion. Sales in North America were up 29% on a two-year basis. Nike’s online sales soared 41% from the year-ago period and up 147% from the same period two years ago.
The company’s sales in Greater China climbed just 17% to $1.93 billion, partly curbed by a boycott in the country after several Western brands, including Nike and Adidas, raised concerns regarding allegations of forced labor in the province of Xinjiang.
Nike said its e-commerce sales have been driven by its membership model as online purchases from Nike members soared to a new high of $3 billion in the fourth quarter. Nike members gain first access to exclusive products and several other benefits, and there are more than 300 million of them at the moment. The company also expects its revenue to rise by a low double-digit percentage in fiscal 2022 to more than $50 billion, compared to Wall Street estimates of $48.5 billion. The company also expects supply chain delays and higher costs related to logistics will continue next year as well.
As a result, numerous Wall Street analysts have reportedly moved to raise their price targets on the Nike stock. 🎯
One equity market analyst who targets Nike to reach $185 per share, Jay Sole, has commented: “The financial benefits from Nike's transformation into a digitally-led, direct-to-consumer company are just starting to play out. We believe the reason to own Nike is for the exceptional growth it is likely to achieve over the coming years.”
So, is it a time to buy new Nike shoes or to trade Nike's stock? 👟
But that's up to each and every one. Trade responsibly and stay tuned for more upcoming market insights!
Your NAGA Team
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