Nike shares closed Friday up more than 15%, hitting a record intraday high; after the sneaker maker forecast full-year sales topping $50 billion; as its North American business rebounds from the lows of the coronavirus pandemic.
Also, in greater China sales appear to be improving with Nike management; saying the company is confident about its ability to regain trust with customers there; amid threats to boycott Western brands over their comments expressing concern about alleged forced labor in Xinjiang.
“These are times when strong brands can get stronger, and each quarter this reality becomes even more clear,” Nike Chief Executive Officer John Donahoe said during an earnings call Thursday evening.
Nike’s stock ended the day up 15.5% at $154.35. At one point, shares hit an all-time intraday high of $154.59. The retailer, which has a market cap of more than $243 billion, last saw its stock hit an all-time high of $147.95 on Dec. 21.
Globally, Nike is seeing shoppers splurge on new sneakers and fashion-forward sweatsuits to wear as more people begin to socialize again. The company’s Jordan brand has been a particular bright spot.
During the three-month period ended May 31, Nike’s total revenue nearly doubled to $12.34 billion from $6.31 billion a year earlier, topping Wall Street estimates by more than $1 billion. In North America, Nike’s biggest market, sales more than doubled to a record $5.38 billion.
According to Telsey Advisory Group analyst Cristina Fernández, Nike is benefiting from its closer connections with customers through its membership program; higher full price selling, greater use of data and a smarter wholesale model with strong partners like Foot Locker.
Telsey raised its price target on Nike shares to $180 from $160.
Nike warrants “a significant valuation premium” compared with other global apparel and footwear brands, he added.