Why Nike Stock Surged Today
Shares of Nike (NYSE: NKE) were speeding past the competition today after the company crushed expectations in its first-quarter earnings report, released yesterday. Direct sales in the quarter, which include Nike's stores and web portals, rose 12% in the period to $3.7 billion, and digital sales soared by 82% with strong performance in all of its geographies, including triple-digit growth in the Europe, Middle East, and Africa (EMEA) region. Nike's profits actually increased in the quarter, despite headwinds from the pandemic, as a lack of sporting events meant that marketing expenses -- or what it calls demand creation -- were down 33% to $677 million.
