Nike surges on earnings beat after tough market day
Nike shares surged more than 7 percent in premarket action Friday as the embattled retailer easily topped expectations for quarterly revenue and earnings.
The company said Thursday second-quarter revenue increased 10 percent to $9.4 billion, topping projections from analysts polled by Refinitiv. Adjusted earnings per share were 52 cents on income of $847 million, exceeding an expected 46 cents.
“Nike's ambitious digital transformation is driving strong results and momentum in North America and in our international geographies,” Nike CEO Mark Parker said in a statement.
“We’re incredibly energized about 2019 – with a full innovation pipeline; the most personal, responsive retail experiences in the industry; and a supply chain that’s delivering speed at scale."
On Thursday, the company’s stock rose as much as 8 percent on the earnings beat, a relief to investors who have seen Nike shares slump nearly 20 percent since September amid broader market pressure.
The bounce came after another volatile session on Wall Street Thursday which clipped nearly 500 points off the Dow Jones Industrial Average. A looming government shutdown roiled investors who were already on edge after the fourth rate hike by the Federal Reserve, which was announced Wednesday.
December is on pace to be the worst month for the Dow and S&P 500 since 1931.