Consumer preference for Swoosh revived in the fourth quarter as Nike reported reaching profits that slashed past analyst expectations.
For the three months ended May 31, Nike made a net profit of $ 1.5 billion, or 93 cents of diluted share, compared to a loss of $ 790 million, or 51 cents, in the quarter of the previous year.
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Revenue for the quarter was $ 12.3 billion, nearly doubling from last year’s $ 6.31 billion.
For the fiscal year, the company said it earned $ 5.73 billion, or $ 3.56 per share, from $ 2.54 billion or $ 1.60. Revenue improved 19.1% to $ 44.54 billion.
Analysts expected profit of 51 cents per share in the quarter and EPS of $ 3.14 for the year.
By region, sales in the fourth quarter in North America jumped 141.4%, led by a jump in footwear sales of 136.2% to $ 3.79 billion. In Greater China, footwear sales rose 14.5% to $ 1.32 billion.
The company said wholesale revenue rose in the fourth quarter due to delayed deliveries from the previous quarter.
“Nike’s strong results this quarter and full fiscal year show Nike’s unique competitive advantage and deep connectivity with consumers around the world,” President and CEO John Donahoe said in a statement on earnings. “Driven by our momentum, we continue to invest in innovation and our digital leadership to lay the groundwork for Nike’s long-term growth.”
Nike brand wholesale shipments rose 16.7% to $ 35.77 billion, while Nike e-commerce direct sales rose 32.2% to $ 16.4 billion for the year.
“Nike’s brand momentum is a testament to our authentic consumer connections, digital power and continuous operational execution,” Matt Friend, EVP and CFO, said in a statement. “As we advance consumer-driven digital transformation, we are building a new financial model that will continue to drive Nike’s long-term sustainable, profitable growth.”
Nike’s share rose nearly 5% after marketing on Thursday to $ 140.13.