Nike reported fourth-quarter earnings and revenue that crushed estimates amid record sales in North America.
The sports giant, which is doubling down on its direct-to-consumer and digital-led strategy, reported that its net income rose to $1.5 billion, or $0 93 per share, for the quarter ended May 31, compared with a loss of $790 million, or $0.51 per share, in the year-ago period. Analysts had expected earnings per share of $0.51.
Nike’s total revenue increased 96% to $12.34 billion, topping estimates for $11.01 billion, helped by increased wholesale shipments as physical stores reopened. Digital sales increased 41% compared with the prior year and jumped 147% compared with the same period in 2019.
Sales in North America, Nike’s biggest market, more than doubled to a record $5.38 billion. Sales increased 29% on a two-year basis.
Nike Direct fourth quarter sales increased 73% to $4.5 billion.
For the full year, Nike reported its revenues increased 19% to $44.5 billion.
“FY21 was a pivotal year for Nike as we brought our consumer direct acceleration strategy to life across the marketplace,” said Nike CEO John Donahoe. “Fueled by our momentum, we continue to invest in innovation and our digital leadership to set the foundation for Nike’s long-term growth.”
On the company’s earnings call, Donahoe said Nike remains focused on its largest growth drivers, including its women’s business, apparel, Jordan and international.
“Our strengths and proven playbook give us the confidence to move even faster to invest even a more accelerated pace against the opportunities we see ahead,” Donahoe said. “Our goal isn’t merely to take market share. Our goal is also to grow the entire market.”
Nike offered a better-than-expected sales outlook for the upcoming year. In fiscal 2022, the company is expecting revenue to grow a low double-digit percentage, surpassing $50 billion. Analysts were expecting annual revenue of $48.5 billion.
