Shares of Nike (NKE) are up 13% after the sneaker and athletic apparel maker reported better-than-expected earnings for its fiscal second quarter.
Nike announced that its global sales rose 17% to $13.3 billion U.S. in the quarter ended November 30, surpassing the average forecast of analysts for sales of $12.6 billion U.S.
Nike’s worldwide sales beat expectations in every region except for China, where ongoing COVID-19 lockdowns continue to hamper consumer spending.
Earnings per share came in at $0.85 in the quarter, which handily beat analyst expectations for $0.64. Nike has now beaten Wall Street’s earnings estimates for three consecutive quarters.
While Nike’s inventories rose 43% in the quarter from a year earlier, the Beaverton, Oregon-based company said that number was inflated by abnormally low levels in the same period of 2021.
Looking ahead, Nike forecasts revenue growth in the low teens on a currency-neutral basis for its full fiscal year that ends in mid-2023.
Prior to its latest earnings announcement, Nike’s stock had declined 37% in 2022 to trade at $103.21 U.S. per share.
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