Nike earnings top Wall Street's expectations, despite inflation in the U.S. and Covid lockdowns in China

Nike earnings top Wall Street's expectations, despite inflation in the U.S. and Covid lockdowns in China

Nike Air Jordan shoes are seen in the store in Krakow, Poland on August 26, 2021.

Jakub Porzycki | Nurphoto | Getty Images

Nike on Monday topped Wall Street’s earnings and sales expectations for the fiscal fourth-quarter, as the sneaker giant overcame a Covid lockdown in China and tougher climate for consumers in the U.S.

Shares rose about 2% in aftermarket trading.

Here’s how Nike did in its fiscal fourth quarter compared with what Wall Street was anticipating, based on a survey of analysts by Refinitiv:

  • Earnings per share: 90 cents vs. 81 cents expected
  • Revenue: $12.23 billion vs. $12.06 billion expected

The company reported net income for the three-month period ended May 31 of $1.44 billion, or 90 cents per share, compared with $1.51 billion, or 93 cents per share, a year earlier.

Sales dropped to $12.23 billion from $12.34 billion a year earlier.

Shares of Nike closed on Monday at $110.50, down 2.13%. As of Monday’s close, Nike shares are down about 34% so far this year. It’s underperformed the S&P 500, which is down about 18% during the same period. The company’s market value is $173.9 billion.

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