The rtaking of sports during the spring season, the improvement of the pandemic situation is strong growth of brand in China despite the boycott campaign that struck in Dragon several western brands as well H&M is Adidas for complaints of forced labor in the Xinjiang Uyghur Autonomous Region (Xuar). Factors they have driven the demand for sneakers and sportswear.
Nike closed its fiscal fourth quarter with a record result, reaching for the first time in the company’s 50-year history a turnover of over 12 billion dollars. Revenues for the quarter doubled a 12.34 billion dollars, compared to the 6.31 billion recorded a year earlier, when sales were affected by the effects of the spread of Covid-19. Direct sales, i.e. items ordered through the app, the Nike website or stores, jumped 73% in the fourth quarter to $ 4.5 billion.
In trading after-hours, Nike stock jumped 12%, revealing that the results exceeded Wall Street’s forecasts. Net profit for the period amounted to 1.5 billion dollars, compared to the net loss of 790 million dollars recorded in the same quarter a year earlier. “These are times when strong brands can become stronger and each quarter this reality becomes even more concrete”, said the CEO John Donahoe in a call with analysts.
During the pandemic, many professional and youth sports have been suspended. Nike temporarily closed its retail stores and continued to pay its employees, doubling digital sales while consumers were confined to their homes. When people went back to shopping in stores and sporting events resumed, revenue increased 141% in North America in the quarter ended May.
The sales in the region increased by 29% compared to the same period in 2019. In China, sales in the Greater China region increased 17% for Nike to $ 1.9 billion in the last quarter.
Executives expect Nike’s revenue to increase by more than 10% and exceed $ 50 billion in the fiscal year that began in June, after rising 19% in the fiscal year just ended. They also expect profit margins to expand as the company sells more items directly to consumers.
The company also expects direct sales to account for around 60% of total sales in 2025, up from 40% now. The company also said it is seeing sequential improvement in China and plans to open a new digital technology center in Shenzhen.