Shares of Nike sprinted to hit an all-time high Friday, jumping 15% in early trading. Investors scooped up shares after the sportswear giant bullishly forecast that full-year sales would top $50 billion.
Nike’s quarterly revenue also nearly doubled, and profit crushed analysts’ estimates. The strong results assuaged investors who were worried about its weak performance in the fast-growing China market, where sales were hit by calls to boycott global brands for their comments around forced labor in Xinjiang.
Pent-up demand from American and European shoppers more than made up for weak China sales. Consumers are back to snapping up sneakers as they head outdoors and return to their routines, thanks to an aggressive vaccination campaign.
Back on Wall Street, Nike’s results also pumped up shares of retailer Foot Locker. In Germany, shares of rivals, Adidas and Puma, rose, too.