Nike shares hit record high following strong quarter
US retailer Nike has seen its shares reach a record high $80, rising as much as 12% following the company’s latest quarterly earnings announcement that succeeded analysts’ expectations with ease.
The company’s digital business rose as much as 41% for the quarter alone, whilst Nike’s presence in China also continued to grow, with regional revenues up 25% year-over-year.
Further, despite already being the world’s largest shoemaker, Nike revealed that sales across its North America business rose 3.3% for the three-month period, largely driving the firm’s strong performance.
In total, the retailer’s revenue rose 13% to $9.8bn whilst the company’s operating profit was up to $1.1bn, whilst sales are expected to continue to grow throughout 2018.
“We have momentum,” said Nike’s Chief Executive Officer Mark Parker.
Nike is now forecasting annual sales growth in the high single digits, a revised outlook following its recent performance.
Further, the firm also unveiled that it would be pursuing a new $15bn share buyback program, set to begin at the close of its current $12bn initiative at the end of the current fiscal year.