Nike shares rose in recent trading after it announced revenues and profits that exceeded Wall Street expectations in the second quarter, due to e-commerce sales and the return of growth in the Chinese market, as the company’s sales rose 8.9% to reach $11.2 billion in the quarter that ended. On November 30, while analysts had expected sales of $10.6 billion.
Dividends increased to 78 cents per share, compared to expectations that predicted an increase of 62 cents only, and the results indicate that Nike is now in the stage of recovery from the Corona pandemic crisis that hindered the company’s business, and despite the results of the month of September, which broke the barrier of expectations. Wall Street”, but sales declined during most of 2020 and only recently returned to growth.
According to the company, more than 90% of Nike-owned stores are open today, their stock levels are down 1.8% from the previous year, and their shares have seen a significant improvement, with the company’s shares rising 6% to $145.49 in extended trading on Friday. Its stock is up 36% this year.
But the state of recovery from the crisis was not at the same pace around the world, as China advanced over other countries in controlling the Corona virus, with its sales increasing by 24% to reach $2.3 billion, and this is the first time that sales exceeded the $2 billion barrier, but around the world. Some Nike stores are still operating reduced hours, with the authorities imposing limits on the number of customers.
Getting rid of the company’s excess inventory of products required increasing its promotions, which affected the company’s gross profit margin, in addition to the increase in the tax rate from 11% last year to 14% this year, which, according to the company, is due to changes in US laws. The company’s various sources of profits.
Like many other retailers, Nike has invested heavily in the e-commerce business as people continue to stay home and shop online this year, and did well in online sales in the last quarter, with its online sales up 84%.