What happened
Shares of Nike (NKE 0.95%) 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.
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.
