Nike (NKE) reports Q2 fiscal 2021 earnings, sales beat

A woman carries Nike shopping bags at the Citadel Outlet mall, as the global outbreak of the coronavirus disease (COVID-19) continues, in Commerce, California, U.S., December 3, 2020.Lucy Nicholson | ReutersNike on Friday reported quarterly sales and earnings that topped analysts’ estimates, driven by triple-digit growth online in North America and strong demand for its sneakers and workout apparel from Chinese consumers.Its shares jumped more than 4% in after-hours trading.Here’s how the company did during its fiscal second quarter, compared with what analysts were expecting, based on Refinitiv data:Earnings per share: 78 cents vs. 62 cents, expectedRevenue: $11.24 billion vs. $10.56 billion, expectedFor the three-month period ended Nov. 30, Nike reported net income of $1.25 billion, or 78 cents per share, up from $1.12 billion, or 70 cents a share, a year earlier. Analysts had been calling for earnings of 68 cents per share.Revenue grew 9% year over year to hit $11.24 billion, up from $10.33 billion a year ago. That was better than the $10.56 billion expected by analysts.Nike said its digital sales for its namesake brand were up 84% during the quarter, as more shoppers visited its website during the pandemic to buy athletic apparel and footwear to keep up their fitness routines and personal health. That helped to offset declines at its wholesale partners, the company said, and in its own brick-and-mortar stores, with fewer people feeling comfortable leaving their homes to shop due to the global health crisis.Sales at the Converse brand, which is owned by Nike, fell 1% during the second quarter.In Greater China, Nike’s revenue grew 24%, compared with year-over-year growth of just 1% in North America.With sales somewhat stagnant on its home turf, Nike has been doubling down on the China market, seeing the region as a key growth opportunity for the brand. Over the summer, it opened a new kind of store, called Nike Rise, at a mall in Guangzhou, which holds local meetups for its mobile-app users.Nike sits alongside Lululemon, Dick’s Sporting Goods and other retailers that sell workout gear and sports equipment that have rebounded more quickly this year. Other apparel retailers, particularly those centered around work wear and dresses, have struggled.Still, foot traffic at its stores in North America, Europe and Latin America are down year-over year due to social distancing measures. But customers who venture out to stores are more likely to buy, boosting its conversion rates. Ninety percent of its stores are open, though some are operating on reduced hours.As of market close on Friday, Nike shares have surged more than 37% this year. The company has a market cap of $215.5 billion.Find the complete earnings press release from Nike here.

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