Nike shares rise after buoyant North America sales

Nike shares have jumped after quarterly earnings at the US sportswear brand beat expectations as North American consumers stocked up on footwear ahead of the festive season.

The US group’s European peers gained in early trading on Wednesday on the back of Nike’s figures. Puma and Adidas both rose roughly 6 per cent in Frankfurt, while JD Sports jumped 8 per cent in London.

Nike shares, which have fallen almost 40 per cent in 2022, rose nearly 13 per cent after hours on Tuesday, extending that by 0.2 per cent in pre-market trading on Wednesday.

Second-quarter revenue rose 17 per cent to $13.3bn compared with a year earlier, up 27 per cent on a currency neutral basis, Nike said in a statement after the market closed on Tuesday. Discounts and promotions helped cut excess inventory.

Brand sales were buoyant, up 18 per cent to $12.7bn, and showed “strong growth” in every market and channel, the Oregon-based group said.

Sales of footwear in North America rose 39 per cent while consumers bought up 14 per cent more apparel over the three months to end of November compared with a year earlier. The double-digit growth helped offset weakening demand from China, which has been beset by Covid-19 restrictions.

Nike’s diluted earnings per share rose 2 per cent to 85 cents a share. That beat an average estimate of 64 cents in a Refinitiv poll. Net income was flat at $1.3bn.

“Our growth was broad-based and was driven by our expanding digital leadership and brand strength,” said Nike president and chief executive John Donahoe.