Nike comfortably beat analysts’ estimates for quarterly revenue and profit on Tuesday, powered by a rebound in demand in China and strong online sales, sending its shares up about 9 percent.
The footwear maker has benefited from its focus on direct-to-consumer sales, especially through its own outlets and apps, as the pandemic has forced customers to avoid shopping at malls and department stores.
The Nike brand’s digital sales surged 82 percent in the first quarter ended Aug. 31, with at least double-digit rises recorded in all regions.
Overall, sales in China, where the economy opened from lockdowns much earlier than in other parts of the world, rose 6 percent.
In North America, the company’s biggest market, sales fell 2 percent to $4.23 billion, but easily beat analysts’ estimate of $3.39 billion, according to IBES data from Refinitiv.
“Nike is recovering faster based on accelerating brand momentum and digital growth,” Chief Financial Officer Matt Friend said in a statement.
The company’s net income rose to $1.52 billion, or 95 cents per share, from $1.37 billion, or 86 cents per share, a year earlier.
Revenue fell 0.6% to $10.6 billion.
Analysts had forecast a profit of 47 cents per share and revenue of $9.15 billion.