Nike Drifts Up 13%, Post-Lockdown Demand Forecasts For Online Sales Boost
Nike Inc estimated on Thursday fiscal full-year sales anticipating the Wall Street’s forecasts, placing bets on its online merchandising, increased demand as lockdowns loosen, and its unerring plan of limiting the stock of the most sought-after products.
The company’s share increased almost 13% as the firm reported better-than-anticipated quarterly earnings and revenue.
Thanks to the mass rapid distribution of COVID-19 vaccine, consumers are again interested in buying sneakers for running or hiking that will allow them to go back to their routines, rather than limiting themselves as last year to purchasing comfortable clothing to wear around the house.
According to Chief Financial Officer Matthew Friend, the sneaker maker has already begun to see an increase in its sport performance business.
Nike, based in Beaverton, Oregon, expects revenue to increase by the low double digits in fiscal 2022, surpassing $50 billion. According to Refinitiv, analysts predicted revenue of $48.46 billion in fiscal 2022.
North America, Nike's largest market, saw fourth-quarter revenue more than quadruple to $5.38 billion, beating analysts' expectations of $4.31 billion.
The company's total gross margin increased 8.5 percentage points to 45.8% from the previous year, thanks in part to its direct-to-consumer operation and less charges connected to factory cancellations. According to Refinitiv, analysts predicted a gross margin of 43.96 percent.
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