Nike shares jumped more than 5% to a fresh intraday high Monday, despite a broader sell-off, as investors rallied behind the sneaker maker’s latest quarterly results and an upbeat outlook that not many retail companies have been able to offer during the Covid health crisis.
The retailer’s big bets on its digital business are clearly paying off, with online sales of its namesake brand soaring more than 80% during the latest period. It makes Nike especially well-positioned this holiday season, as a record number of consumers are buying gifts on the web. Nike has also trimmed its inventories, making it less reliant on discounting. Management expects e-commerce will represent about half of Nike’s sales in the near future.
