Nike stock heads for record high after earnings show return to sales growth

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Shares of Nike Inc. hit new records in after-hours trading on Friday after the sportswear giant reported a return to revenue growth.

Nike NKE,
-1.86%
reported second-quarter earnings of $1.25 billion, or 78 cents per share, on Friday afternoon, compared with 70 cents per share a year ago. Sales rose 7% to $11.2 billion from $10.33 billion in the same quarter a year ago after Nike reported lower year-over-year sales in the previous two quarters as the COVID-19 pandemic affected its operations. Analysts on average had expected earnings of 63 cents per share on sales of $10.55 billion, according to FactSet.

“With healthy inventory positions across all geographies, our return to growth is a testament to our digital strength, as well as our disciplined market and financial management,” Chief Financial Officer Matt Friend said in the announcement. Friday.

Nike stock closed at a record low Thursday of $140.50 and hit an intraday high of $141.14 in Friday’s regular session before dropping to a 2.3% daily decline at 137.28 $. In after-hours trading on Friday, shares jumped 3% and more, topping both closing and intraday records. The stock is up 35.5% so far this year, as the S&P 500 SPX Index,
-0.79%
gained 15.2%.

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