Nike Inc has reported a 14 percent increase in its quarterly earnings, earlier this week. This stronger than expected rise in revenue will help the company offset higher costs, and orders show surprising strength for the future.
As the news was announced; investors sprinted back to its stock, forcing share prices to increase. Shares of the athletic-show maker went up by 4.5 percent at $85.25 just after hours. The stock hit its highest level ever in December and through Monday’s close had retreated 12% from that point.
This has come in time, when apparel retailers worldwide are struggling with higher material, labour and transport costs. And it is said by analysts that it is the demand for the brand that helped it sail across smoothly. According to Matt Arnold, an analyst at Edward Jones stated that sales were partly driven by Nike Free, a new line of shoe that mimics barefoot running. Along with this, the company has reported an increase of 31 percent in its online sales which is credited to the increase of the company?s overall income.
Sources: Nike; Wallstreet Journal; Washington Post