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Nike (NKE) reported fourth-quarter earnings after the bell, which saw the Swoosh brand smash expectations despite concerns over trouble for the brand in Greater China.
Revenue: $12.3 billion vs. $ 11.033 billion expected; up 96% Y/Y
Adjusted earnings per share: $93 cents vs. $50 cents expected.
“NIKE’s strong results this quarter and full fiscal year demonstrate NIKE’s unique competitive advantage and deep connection with consumers all over the world,” John Donahoe, president and CEO of NIKE, said in a statement. “FY21 was a pivotal year for NIKE as we brought our Consumer Direct Acceleration strategy to life across the marketplace. Fueled by our momentum, we continue to invest in innovation and our digital leadership to set the foundation for NIKE’s long-term growth,” he added.
Many wondered if the Swoosh brand would continue paying the price for statements made over alleged human rights abuses against Uyghurs in Xinjiang's northern province. However, Nike has now had seven consecutive years of double-digit, currency-neutral growth for its Greater China business.
In North America, Nike delivered record revenues, which were up 141% on a reported basis for the fourth quarter and up 29% compared to the fourth quarter of 2019.
Nike's strong Q4 also extended to its digital platforms, which have become a hallmark of the brand's success over the past few years.
Nike's full-year reported revenues increased 19% to $44.5 billion. Nike Direct Q4 sales increased 73% to $4.5 billion. Q4 Gross margin increased 850 basis points to 45.8% and diluted earnings per share for the full year was $3.56.
Nike's stock spiked more than 5% after hours on the news.
Reggie Wade is a writer for Yahoo Finance. Follow him on Twitter at @ReggieWade.