Shares of Nike sprinted higher in early trading Tuesday, spearheading the Dow’s rise. Investors picked up shares after its quarterly profit shot way past analysts’ estimates, and revenue also beat targets.
Providing the momentum: strong demand for its sports shoes and apparel in its largest market, North America, as shoppers rushed back to stores. The company also said its direct-to-consumer business notched record Black Friday sales despite supply constraints. A COVID outbreak in Vietnam shut down its factories there for months.
That’s where Nike makes half of its footwear, and those supply issues as well as new COVID lockdowns drove quarterly revenue down 20% in the Greater China market.
Its Vietnam plants have since fully reopened, but production volume is still 20% less than before the closure. The company said it’s more confident that supply chain issues will ease in its next fiscal year.