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Nike shares surge as return of pro sports boosts outlook

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Agence France-Presse

<div class="embed-wrap"><figure data-feedback="fb:likes,fb:comments"><img src="http://sa.kapamilya.com/absnews/abscbnnews/media/2021/tvpatrol/06/16/nike.jpg"/><figcaption>A man walks past a store of the sporting goods retailer Nike Inc at a shopping complex in Beijing, China March 25, 2021. <em>Florence Lo, Reuters/File Photo</em></figcaption></figure></div><p>NEW YORK - Shares of Nike skyrocketed Thursday on blowout earnings propelled by gains in direct sales to consumers and positive momentum from the return of professional sports.</p><p>The sportswear giant scored record quarterly revenue earnings in North America and also benefited from a big jump in sales in Europe, Middle East and Africa compared to the same period last year, when COVID-19 restrictions were most severe.</p><p>Higher revenues also helped offset the effects of higher spending on marketing in connection with major sporting events such as this month&#x27;s NBA playoffs and Euro 2020, where the company is a sponsor of Cristiano Ronaldo and of several teams still in contention.</p><p>&quot;We&#x27;re proud that more goals have been scored using Nike boots than all the others combined,&quot; said Chief Executive John Donahoe on an earnings conference call.</p><p>Nike&#x27;s profits for the quarter ending May 31 was $1.5 billion, compared with a loss of $790 million a year ago.</p><p>Revenue nearly doubled to $12.3 billion.</p><p>Executives also outlined a plan for strong performance through fiscal 2025, projecting annual sales growth of high single digit to low double digit growth. </p><p>The outlook reflects the benefit of investments in Nike&#x27;s direct-to-consumer efforts, which have accelerated during the pandemic and as some traditional retailers have gone out of business.</p><p>The company forecasts fiscal 2022 sales of more than $50 billion, said Chief Financial Officer Matt Friend.</p><p>Shares jumped 12.1 percent to $149.71 in after-hours trading.</p><ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/business/02/04/21/nike-pivots-to-hands-free-shoes-with-flyease-launch">Nike pivots to &#x27;hands-free&#x27; shoes with FlyEase launch</a></li>	<li><a href="https://news.abs-cbn.com/business/03/26/21/nike-adidas-join-brands-feeling-chinese-social-media-heat-over-xinjiang">Nike, Adidas join brands feeling Chinese social media heat over Xinjiang</a></li></ul><div><strong>RELATED VIDEO:</strong></div><figure class="op-interactive"><iframe height="315" src="https://www.youtube.com/embed/g_FZig067tU?enablejsapi=1" width="560"></iframe></figure><div class="iwantbar">Watch more in <a href="//www.iwantv.com.ph/">iWantv</a> or <a href="//tfc.tv/">TFC.tv</a></div>

<p>Shares of Nike skyrocketed Thursday on blowout earnings propelled by gains in direct sales to consumers and positive momentum from the return of professional sports.</p>

Shares of Nike skyrocketed Thursday on blowout earnings propelled by gains in direct sales to consumers and positive momentum from the return of professional sports.