For the second quarter of fiscal 2021, Nike Inc. (NKE) posted results above the forecasts of Wall Street analysts. In spite of the pandemic, the sportswear and apparel manufacturing firm continues to rise revenue year-on-year.
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For many apparel and footwear stores and suppliers, the COVID-19 pandemic has been a tough test and a period of severe market decline. Initially, Nike has encountered issues with distribution and supply chains. The sales of the company, however, eventually recovered, including through e-commerce.
Nike’s sales rose 9 percent year-on-year to $11.2 billion in the second quarter. GAAP net income increased by 12 percent to $1.25 billion or $0.78 per share. China was the most profitable region where quarterly revenue increased by 24 percent year-on-year. Owing to the closing of stores and shopping malls, e-commerce growth was 84 percent year-on-year, which helped counter the fall in conventional retail. Some analysts, including KeyBanc, claim that Nike has not completely realized its e-commerce potential yet and will make this aspect of the organization much more strong.
Nike was able to improve sales specifically due to the features of the collection, considering the general unfavorable situation in the footwear and apparel retail market. The first to suffer were suppliers of festival and business clothes due to social restriction. Around the same time, particularly through the most extreme limitations, the market for comfortable sportswear and shoes continued. Then one of the few legally allowed excuses for leaving the house became individual athletics, and many took advantage of it. Thus, the market for items from Nike continued.
NIKE, Inc. (NKE) was stable at -0.08% to mark $141.47, having risen in price by more than 43 percent over the past six months. The Beaverton, Oregon-headquartered firm has added nearly 39 percent during past one year, raising its market capitalization to over $222 billion.