1 month Nike Stock jumps 12% after-hours. Earnings smash estimates, and China sales up despite boycott. Reddit      

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EPS of 93 cents on revenue of $12.3 billion, up 96%. North American sales shot up 141% to $5.4 billion. Europe, Middle East and Africa sales jumped 107% excluding currency changes to $3 billion. Asia Pacific & Latin America sales surged 76% to $1.46 billion.

Greater China sales grew 9% to $1.9 billion. China called for a boycott of Western goods after Nike and others accused Chinese officials of using forced labor in the cotton industry.

While most Nike stores are now open, digital purchases have fueled sales throughout the pandemic. Nike Brand Digital revenue jumped 41% in Q4 after soaring 147% in 2019. Online sales surged 59% in Q3, after accelerating to 84% growth in Q2 from 82% in Q1.

Pivotal Research Group analyst Mitch Kummetz said in a June 21 note that favorable U.S. market conditions likely drove higher-than-expected direct to consumer penetration. Strong full-price sell-through on lean channel inventory may have also boosted profits.

“We’re very bullish on the company’s North American performance for the quarter,” Kummetz said. The report adds that Pivotal’s May Footwear Survey indicates that “even as U.S. consumers are now buying a wider range of footwear, they continue to buy shoes to get outdoors (for a run, walk or hike), which is right in NKE’s sweet spot.”

Kummetz has a buy rating on Nike stock with a price target of 167.

I bought NKE at the height of the recovery stock craze a few months ago and have been waiting for the stock to do something since.

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