Earnings: Nike Crushes Estimates In Recent Quarter
Athletic apparel giant Nike has released its earnings report for its most recent fiscal quarter ended May 31, 2021. The report shows Nike beating analyst estimates by a large margin, with sales up 96% year-over-year.
- Nike brought in $12.3bn in sales in the quarter. Net income was $1.5bn, compared to a $790mn loss in the same quarter of the previous year.
- For the fiscal year leading up to May 31, Nike reported $44.5bn in sales, compared to $37.4bn in the previous year.
- From its $12.3bn quarterly revenue, the majority as usual came from Nike brand sales ($11.8bn) and a minority from Converse ($596mn).
- The earnings report shows that Nike has largely recovered from an earnings slump caused by the Covid pandemic last year. The company was a victim of widespread physical retail shutters that brought down sales amid the pandemic.
- In light of its recovery, Nike used its profits to pay dividends as well as resume a share buyback program. The company paid $1.6bn in dividends and bought back shares worth $690mn in its recent fiscal year.
- After the earnings report, Nike shares closed up 15.5% on Friday. The company closed the day at $154.35 per share, with a market cap of $244bn.