Nike's (NYSE:NKE) stock was sprinting ahead in after-hours trading on Friday following the post-market release of its results for the second quarter of fiscal 2021.
For the quarter, the famous athletic apparel maker posted revenue of $11.2 billion, which was 9% higher on a year-over-year basis. GAAP net profit grew at a slightly loftier rate, improving by 12% to $1.25 billion, or $0.78 per share.
Those headline numbers handily beat analyst estimates. On average, prognosticators tracking the stock were anticipating $10.56 billion on the top line and a per-share net profit of $0.62.
While many sports activities around the world have been curtailed because of the coronavirus pandemic, customers are still snapping up Nike sneakers and clothes. The company's revenue increased in each of its regions, with the leader being Greater China's 24%. Growth in the digital sphere was also outstanding, with an 84% rise in Nike brand merchandise.
These growth hotspots more than compensated for declines in Nike's brick-and-mortar retail stores. As with other retailers across the sector, Nike outlets had to contend with mandatory closures in certain locations during part of the quarter. When they were open, they also saw greatly reduced traffic.
"With healthy inventory positions across all geographies, our return to growth is a testament to our digital strength, as well as our disciplined marketplace and financial management," CFO Matt Friend said of the quarter's results.
Investors rewarded the better-than-expected results Friday night by pushing the stock up by 3.9% in after-hours trading. This was in sharp contrast to the 2.3% decline it experienced during the standard trading day.