Nike Grows Despite China Problem

Shares of Nike (NYSE: NKE) jumped 5.98% in after-hours trading on Monday after the footwear and apparel company posted mixed earnings results. Financials: Nike reported earnings per share of 83 cents and revenue of $11.4 billion in the quarter; both were better than expected. The Good: The company had a strong quarter in North America. There were higher levels of in-transit inventory. Nike’s direct sales in the market grew 30%, including record sales during the week of Black Friday. The Bad: Revenues in China declined. Nike attributed the drop to decreased levels of inventory due to pandemic-driven factory closures. Numbers: Nike has experienced 12% growth in 2021, but the stock is down nearly 10% this month. Will the company recover those losses in the coming weeks? Final Thoughts: Last week, Nike acquired virtual shoe company RTFKT. Is Nike making a play for the metaverse? Hope you enjoyed this commentary. Please subscribe to Early Bird, a free daily newsletter that helps you identify investment trends: https://earlybird.email/