There may be no big brand stock executing better than Nike (NYSE:NKE).
Shares of the sportswear giant just jumped double digits on a flawless fourth-quarter earnings report. Results easily beat expectations with revenue jumping 96% from the lockdown-impacted quarter a year ago to $12.3 billion, or up 21% from Q4 2019, showing the company is well ahead of pre-pandemic levels. That also easily beat analyst estimates at $11 billion.
Nike’s direct and digital performance stood out with direct sales up 73% to $4.5 billion, making up more than a third of total revenue, and Nike brand digital sales up 41% from the year-ago period and 147% from two years ago.
Profits also surged thanks to the shift to higher-margin direct sales as Nike reported earnings per share of $0.93, easily beating the consensus at $0.51.
Guidance was equally impressive as management called for low double-digit revenue growth this fiscal year to more than $50 billion, ahead of estimates at $48.5 billion, and for improving margin, though it didn’t give a specific earnings per share target.
The company was also confident enough to give guidance through fiscal 2025, showing it will continue to reign supreme over the sportswear world.
The view ahead
Looking ahead to 2025, Nike called for roughly 10% annual growth and improving EBIT (earnings before interest and taxes) to the high teens, up from a 15.5% EBIT margin last year. Based on that math,…