Nike (NYSE:NKE) shares soared after the company projected that its revenue this fiscal year will surpass $50 billion U.S. for the very first time.
Nike said it is benefiting from rebounding growth throughout North America. The Beaverton, Oregon-based company is forecasting low double-digit sales growth in the current year, ending next May. The announcement was made after Nike reported better-than-expected fiscal fourth-quarter results.
Nike is gaining momentum as sports leagues and events resume in the U.S. and Europe, driving demand for its sneakers and apparel. Wall Street was forecasting sales of $48.6 billion U.S. for fiscal 2022.
The athleticwear maker posted sales growth across its regions last quarter, boosted by record revenue in North America. Global sales almost doubled to $12.3 billion U.S. in the period ended May 31, the company said in a statement.
At the same time, Nike’s sales growth in Greater China, which had until recently led the company’s revival, is starting to cool off. Revenue climbed just 17% in China to $1.93 billion U.S., missing analysts’ expectations of $2.25 billion U.S. The company forecasts growth in the low to mid teens in China over the long term.
Shares of Nike jumped as much as 13% to $151 U.S. in premarket trading Friday (June 25) before U.S. markets opened, an all-time high. The stock had been down 5.6% this year through Thursday’s close in New York trading.
