On June 25, Nike Group (NYSE:NKE) released its fourth quarter and full-year performance report for fiscal year 2021. As of May 31, Nike’s fiscal year 2021 revenue increased by 19% year-on-year to US$44.54 billion, and net profit increased by 126% to US$5.727 billion.
Among them, Nike’s revenue in Greater China in fiscal year 2021 was US$8.29 billion ( Approximately RMB 53.5 billion), a year-on-year increase of 24% from US$6.679 billion in the previous fiscal year, and an increase of 19% after excluding the impact of exchange rates.
Nike Group CEO John Donahoe said: “Nike is a brand that belongs to China, A brand born for China.”
At the close of trading on the 25th, Nike’s stock price rose 15.53% to US$154.35, leading The Dow rose and hit a new all-time high. The latest market value is US$243.5 billion, an increase of approximately US$32 billion (approximately RMB 208 billion) from the previous trading day.
Greater China has seen double-digit growth for seven consecutive years
On the 25th, Nike Group released its fourth quarter and full-year performance report for fiscal year 2021. The financial report shows,
Nike’s earnings per share in the fourth quarter were US$0.93, compared with a loss of US$0.51 per share in the same period last year;
Revenue of US$12.34 billion, last year US$6.313 billion during the same period, far exceeding market expectations of US$11 billion;
Net profit was US$1.509 billion, a loss of US$790 million in the same period last year.
So far, Nike’s full-year revenue has increased by 19% year-on-year to US$44.538 billion, and net profit has increased by 126% to US$5.727 billion. In the last fiscal year, Nike Group’s revenue was US$37.403 billion and net profit was US$2.539 billion.
The financial report shows that in the North American market, Nike’s largest market, revenue in fiscal year 2021 increased by 19% year-on-year, reaching a record high of 171.79 One hundred million U.S. dollars. In Greater China, revenue in fiscal year 2021 was US$8.29 billion (approximately RMB 53.5 billion), a year-on-year increase of 24% from US$6.679 billion in the previous fiscal year. Excluding the impact of exchange rates, it increased by 19%. Nike Group’s performance in Greater China has achieved double-digit growth for seven consecutive years.
Looking at the fourth fiscal quarter of 2021 alone, Nike Greater China achieved revenue of US$1.933 billion, an increase of 17% from the same period in the previous fiscal year, and also higher than the same period in fiscal 2019. Revenue of $1.7 billion.
According to the 618 battle report released by Tianxia.com, June 1st – June On the 20th, Nike ranked first in Tmall’s sports and outdoor brand sales rankings. In the 618 ultimate list released by Yibang Power, the Nike brand is second only to Anta’s Fila brand, ranking second in the sports/leisure wear list.
According to the Financial Times, during the conference call , some analysts mentioned that Nike faces competition from other brands in China. Group CEO John Donahoe responded: “Nike is a brand that is of China and for China. China)”.
Many investment banks have raised their target prices, with the highest price reaching $192
After Nike’s financial report was released, many investment banks raised their target prices for the company.
UBS raised its target price on Nike to $185 from $170.
Baird analyst Jonathan Komp raised his Nike target price from $150 to $192 , maintaining the “outperform” rating. The analyst noted that Nike’s fourth-quarter results nearly doubled, reflecting the company’s strong momentum in North America, Europe, the Middle East and Africa, as well as better-than-expected performance in Greater China. The analyst currently believes that the upside potential of Nike’s stock price in the next three years may reach more than $250.
RBC Capital analyst Beth Reed raised the target price for Nike from $165 to $183 US dollar, maintain “outperform” rating. The analyst said Nike reported “strong” fourth-quarter results and positioned its 2025 model year ahead driven by digital, women’s products, apparel, Jordan Brand and international sales.Revenue growth forecast for 2020 was raised from high single digits to low double digits.
It is worth noting that on the evening of June 25, Li Ning released its results According to the report, the net profit in the first half of this year is expected to be no less than RMB 1.8 billion, compared with RMB 683 million in the same period last year. Anta previously predicted that, excluding the impact of the Amer joint venture, the company’s net profit in the first half of the year will achieve a growth of over 65%, approximately 2.38 billion yuan.
Since the low point in March this year, Anta Sports’ stock price has risen by 53%, Li Ning has risen by 102%, and Xtep International has soared by 287%.
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