Shares of Nike surged over 15 percent.
Shares of Nike surged over 15 percent to a record high Friday after the sportswear giant forecast full-year sales of more than $50 billion, riding on pent-up demand for sneakers and athletic gear from US shoppers.
And 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.
The company’s fourth-quarter revenue also nearly doubled, topping $12 billion for the first time and overshadowing a weaker-than-anticipated performance in its fast-growing China market.
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.
“We’re confident about what we’re seeing in China … We’ve been in China for over 40 years … And today, we’re the largest sport brand there,” Nike Chief Executive John Donahoe said on Thursday. “We’re a brand of China and for China.”
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.