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Why Nike's Shares Climbed 12.2% in September

By Royston Yang – Oct 5, 2020 at 3:49PM

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The company continues to leverage its digital network and innovative footwear to grow its business.

What happened

Shares of Nike (NKE -2.30%) climbed 12.2% in September, according to data provided by S&P Global Market Intelligence.

The footwear giant's stock has gained 22.8% year to date and has gone on to hit new all-time highs.

Lady tying shoelaces while sitting on sofa

Image source: Getty Images.

So what

Nike reported its fiscal year 2021 first-quarter results and surprised with almost flat year-over-year revenue; the expectation was that the company would post a sales decline due to the coronavirus. But digital sales continued to impress, increasing 82% year over year overall and clocking a triple-digit increase in the Europe, Middle East, and Africa (EMEA) region. With a significant fall in marketing expenses due to live sporting events being postponed or canceled, Nike ended up posting an 11% year-over-year jump in net income to $1.5 billion.

Now what

Growth is set to continue with its strengthened digital platform during this pandemic. With a global shift toward healthier lifestyles, Nike should continue to witness strong demand.

Management will continue to grow with four key strategies: product innovation, where Nike already has a great track record of releasing popular, iconic shoes such as the Air Zoom Alphafly NEXT%; broadening its consumer base; continuing to grow its digital platform; and its evolution to a successful omnichannel strategy.

Royston Yang owns shares of Nike. The Motley Fool owns shares of and recommends Nike. The Motley Fool has a disclosure policy.

Stocks Mentioned

Nike Stock Quote
$109.62 (-2.30%) $-2.58

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