Nike, the renowned American apparel and footwear maker, saw its shares rise on Tuesday (22 September) as its Q1 revenue beat all the predictions made by analysts and experts.
The Q1 revenue for the world’s largest sportswear brand touched US $ 10.6 billion – much higher than US $ 9.1 billion estimated by analysts.
The investors seem to be slowly regaining their confidence in Nike especially after the brand’s impressive performance in China as well as in e-commerce.
The sales rose by 6 per cent in China, while the e-commerce sales for Nike, during the quarter, shot up by a whopping 82 per cent – and it’s going to only get better with holiday season approaching.
Q1 performance has been a big reversal for Nike especially after a poor last quarter that saw its sales fall by 38 per cent. Consequently, the fashion retailer saw its shares rise by 13 per cent on Tuesday.
Also Read: Nike performs well in China as its Q4 sales fall by 38%
The net income, for the quarter ended 31 August, jumped to US $ 1.52 billion from US $ 1.37 billion a year back.
While the retailer has performed well in China and done remarkably well digitally, it has also not stopped launching new products even in these tough times.
Further on the same, CEO John Donahoe said “no one can match our pace of pumping out new products, which has kept up despite disruptions from the health crisis.”
Here it is also important to note that Nike has been selling more merchandise directly to consumers and has been depending less on outside retailers. This has benefitted Nike a lot at a time when several bigwigs like J. Crew and JCPenney have filed for bankruptcy protection.
Nike generated revenue in excess of US $ 37.40 billion in 2020 (ending 31 May).
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