Shares of Nike Inc. advanced in the after-hours trading on Monday after its second-quarter fiscal 2022 revenue outpaced market estimates.
The footwear manufacturing company significantly edged up 3.81% or 5.98 points to $162.96.
Accordingly, it reversed its decline of 2.71% or 4.38 points to $156.98 per share on the regular trading session.
In addition, the firm currently stands with a market capitalization of $248.47 billion.
Despite the persisting supply chain pressures that impeded deliveries, Nike posted a better-than-expected revenue.
In its latest earnings call, its revenue increased 1.00% to $11.36 billion from the prior year. It also beat the analysts’ expectation of $11.25 billion.
Likewise, its net income edged up 7.00% to $1.34 billion from $1.25 billion a year earlier.
At the same time, its diluted earnings per share improved 6.00% to $0.83 from the prior figure of $0.78 per share.
Remarkably, it came in better than the forecasted earnings of $0.63 a share.
Earlier this year, the worldwide pandemic restrictions slowed down inventory shipments, weighing heavily on its progress.
Nevertheless, Nike cited that the demand in North America fueled the flow of its products.
Correspondingly, it mentioned that all of its factories in Vietnam had already resumed their operations, whereas production came back about 80.00% of pre-closure levels.
Consequently, it confidently forecast that its global supply levels will normalize towards fiscal 2023.
Nike Q2 Fiscal 2022 Financial Results
Moreover, the athletic giant’s revenue on the Nike brand remained at $10.80 billion. Its lower revenue on wholesale business pulled down possible gains.
Meanwhile, its sales for Converse increased 16.00% to $557.00 million, boosted by its solid performance across Europe and North America.
Subsequently, Nike noted that its digital sales strengthened 12.00% year-over-year, led by 40.00% growth in North America.
For the third quarter, the firm anticipated its sales to elevate with a low-single-digit rate from the previous year. Then, market participants expected a 2.50% gain.
The small projection is due to the lingering impacts from the Vietnam factory closures and lower available inventory.
