Nike shares hit new record on better-than expected fiscal year
The king of sporting footwear has done it again – beaten the Street, and sent its share price up. Last week, it reported earnings for fiscal 2020, showing that new products and investments into ecommerce had driven sales up. On the company’s earnings call, CEO Mark Parker praised “broad-based growth in all geographies” singling out the company’s Women’s business and Nike’s digital arm as particularly noteworthy.
Nike’s share price hit an all-time high at the start of this week
Source: Yahoo Finance
Nike beat analysts’ expectations on both top- and bottom-lines. Revenue for fiscal 2020 came in at $10.66 billion, against consensus estimates of $10.44 billion. And earnings hit 86 cents per share – a clear beat against the Street’s predictions of 70 cents per share. Women’s sales rose by 16%, year on year. And digital sales increased by a massive 42% over the same timeframe. All of this is clear proof that the company’s attempts at closing the gap between itself and the customer are paying off.
Speaking to that last point, Parker said: “we're creating a differentiated marketplace for Nike, by scaling our learning and best-in-class experiences with our partners. The key to expanding our competitive edge continues to be our total commitment to the consumer through the Consumer Direct Offense. We're focused, we're investing in our brand in key markets, and we're accelerating in the high-growth dimensions of our business, and that's especially important in the volatile macroeconomic and geopolitical environment that we see today.”
He also pointed out Nike’s opposition to President Trump’s China tariffs, and noted that Nike’s sales grew 27% in the country against fiscal 2019.
Dominion holds Nike in its Global Trends Luxury Fund.
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