Sundaymail Editor
Shares of Nike Inc surged over 15 percent to a record high on Friday after the sportswear giant forecast full-year sales of more than US$50 billion, riding on pent-up demand for sneakers and athletic gear from US shoppers.
The company’s fourth-quarter revenue also nearly doubled, topping US$12 billion for the first time and overshadowing a weaker-than-anticipated performance in its fast-growing China market. A rapid vaccination drive and the easing of restrictions in Europe and the United States have encouraged people to go on a shopping spree, unleashing demand for expensive items, including sneakers.
Those factors helped Nike more than make up for weak China sales, which were hit by calls to boycott global brands for their comments around forced labour in Xinjiang. Still, analysts are optimistic of a swift demand rebound in the region as company executives noted that sales trends in China for June were already reaching 2020 levels.
The jump also helped push the S&P 500 index to a record high, while lifting shares of German peers Adidas and Puma about 6 percent and 2 percent, respectively. — Reuters.
Online Reporter