Nike (NYSE: NKE) shares skyrocketed over 14% during morning trading following the company’s full-year revenue forecast and record fiscal fourth-quarter sales within North America.
The multinational corporation reported revenue of USD12.34 Billion, higher than analysts anticipated USD11.06 Billion. Full year reported revenues rose 19% to USD44.5 Billion, while direct fourth quarter sales climbed 73% to USD4.5 Billion. Furthermore, gross margin during the fourth quarter increased 850 basis points to 45.8%. Diluted earnings amounted to USD0.93 for the fourth quarter and USD3.56 for the full year.
“NIKE’s strong results this quarter and full fiscal year demonstrate NIKE’s unique competitive advantage and deep connection with consumers all over the world,” said John Donahoe, President & CEO, NIKE, Inc. “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.”
Sales rose amid increased wholesale shipments. Throughout the coronavirus pandemic, the prior year’s shipments had been affected by retail store closures. However, many stores have reopened throughout the last few months and restrictions have been lifted. Online sales rose 41% in comparison to 2020 and increased 147% compared to 2019 levels for the same time period.
“NIKE’s brand momentum is a testament to our authentic consumer connections, digital strength and continued operational execution,” said Matt Friend, Executive Vice President and Chief Financial Officer, NIKE, Inc. “As we advance our consumer-led digital transformation, we are building a new financial model that will continue to fuel long-term sustainable, profitable growth for NIKE.”
Nike’s shares were up 12.6% in premarket trading.