Tag: reports

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Business

Hole (GPS) experiences This fall 2020 earnings, 2021 gross sales outlook

Gap (GPS) reports Q4 2020 earnings, 2021 sales outlook

A man walks past a store in New York City on January 12, 2021.

Angela Weiss | AFP | Getty Images

Gap Inc. on Thursday predicted a rebound in sales growth in 2021, hoping customers will soon return to their stores and spend more money on apparel as they try to resume some social activities.

Shares rose more than 3% in after-hours trading.

The apparel maker reported fourth-quarter sales that fell short of estimates as the ongoing coronavirus pandemic forced stores to close in Europe, parts of Asia and Canada. However, thanks to its efforts to sell more goods at full price and make progress, the company made a profit.

The Old Navy and Athleta brands, which focus on basics and exercise equipment, showed continued strength. However, the Gap brand of the same name and the Banana Republic label recorded a further quarter of the decline in sales.

For the quarter ended Jan. 30, Gap reported net income of $ 234 million, or 61 cents per share, compared to a loss of $ 184 million, or 49 cents per share, last year.

The last period’s earnings included a tax gain of around 45 cents per share and an impairment loss of around 12 cents per share related to Gap’s Intermix business. According to a survey by Refinitiv, analysts had asked for earnings of 18 cents per share. It wasn’t immediately clear whether analysts had considered the impact of these items.

Net sales decreased 5% from $ 4.67 billion a year ago to $ 4.42 billion. That didn’t match analysts’ estimates of $ 4.66 billion.

Gap’s sportswear brand Athleta in the same store grew 26% year-over-year and Old Navy increased 7%. However, Gap’s eponymous brand saw sales drop 6% in the same store, and Banana Republic announced that its key metric is down 22%. In-store sales is an important metric for retailers who track performance online and in stores that have been open for at least a year.

According to Gap, total online sales increased 49%, representing 46% of net sales for the quarter.

For fiscal 2021, the company is calling for an increase in net sales in mid-to-senior teens compared to 2020. This assumes the effects of Covid will continue into the first half of 2021 and the retailer will return to a normalized prior-year level – pandemic sales level in the second half, the company said.

According to Refinitiv, analysts called for sales growth of 14.1% compared to the previous year.

Earnings are expected to be between $ 1.20 and $ 1.35 per share. Analysts had expected earnings of $ 1.28 per share.

One limitation, however, is still overcrowded US ports, which results in inventory staying in transit for long periods of time. Gap said the port’s congestion is expected to continue into the first half of the year. As a result, inventory levels are expected to continue growing in the second quarter compared to last year in the high single digits.

Gap plans to open 30 to 40 Old Navy stores and 20 to 30 Athleta stores this year. And around 100 Gap and Banana Republic stores will be closed worldwide.

Gap stocks are up about 75% in the past 12 months. The company has a market capitalization of $ 9.46 billion.

The full press release from Gap can be found here.

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Business

Fox Information Studies Revenue Achieve, Regardless of Scores Drop

Fox News Reports Profit Gain, Despite Ratings Drop

If Rupert Murdoch’s Fox News is at all worried about the recent rating declines, the company has hidden its concerns well. Mr Murdoch’s TV business continues to see sales and earnings growth and reports earnings in both areas in its quarterly report announced on Tuesday.

Fox Corporation, led by Chief Executive, Mr. Murdoch’s son Lachlan Murdoch, saw pre-tax profit jump 17 percent to $ 305 million. In the three months to December, which the company holds for its second fiscal quarter, the company posted an 8 percent increase in revenue to $ 4 billion.

Despite losing its rating crown to CNN in recent weeks, Fox News is still a winning machine. The cable division saw sales jump 1 percent to $ 1.49 billion and pre-tax income up 3 percent to $ 571 million. Advertising rose 31 percent to $ 441 million, but fees paid by cable operators to move the network fell 3 percent to $ 928 million as more people cut the cable.

Lachlan Murdoch trumpeted the cable news network’s performance and downplayed the youngest Decrease in audience numbers.

“The Fox News Channel ended the quarter with the highest average ratings,” he said on an earnings call with analysts. “We are now seeing an expected public retreat since the elections,” a phenomenon he said “in line with previous electoral cycles.” He expects the audience to return to the network at some point.

The company also announced a multi-year renewal contract for Suzanne Scott, the head of the network, to address any concerns that she might be replaced based on the latest rating performance.

“Suzanne’s track record, innovative spirit and commitment to excellence make her the ideal person to continue to lead and grow Fox News,” Lachlan Murdoch said in a statement Tuesday.

The network did not disclose the exact duration or financial terms of the deal.

However, a defamation lawsuit recently filed against Fox Corporation by a little-known technology provider hangs over the company’s financial future. The lawsuit brought by Smartmatic, whose system was used in the Los Angeles County presidential election, seeks at least $ 2.7 billion in damages against Fox Corporation, Fox News and some of its prime-time stars for participating in the conspiracy to lead Defamation and belittling Smartmatic and its voting technology and software, ”the lawsuit said.

Mr Trump and his supporters have repeatedly described the election as “rigged,” and Fox News and its sister network Fox Business have given significant airtime to personalities and anchors who have expressed doubts about the election results. The suit names the Fox anchors Maria Bartiromo, Lou Dobbs and Jeanine Pirro. Mr. Dobbs’ show was abruptly canceled last week, ending his ten year run with the company.

The fine Smartmatic is seeking appears to be an accurate reflection of the profit Fox Corporation is making. For the 2020 calendar year, the company posted pre-tax profits of approximately $ 3.1 billion. Fox recently moved to dismiss the lawsuit.

Fox News is also facing competition from newer media outlets like OANN and Newsmax, which are even further to the right. Fox loyalists appeared to have turned on the network after it scheduled the presidential election for Joseph R. Biden Jr., with some viewers flocking to competitors.

When asked about the declining ratings and the impending battle for his core audience, Mr Murdoch took some time to try to answer the question.

“In the journalism trade, you work out what your market is and produce the best product you can possibly produce,” he said. “At Fox News, Fox News’ success throughout its history has been delivering the absolute best news and opinion for a market we believe is firmly at the center of the right.”

He didn’t seem concerned about the surge in far-right news outlets, which have posted record ratings in the past few weeks.

“We believe that we are aligned exactly where we are aligned with the center right,” he said. “We believe that the Americans are politically there.”

The company’s Fox channels were a significant contributor to growth for the quarter as local channels posted record advertising in politics during the presidential election. The broadcasting division saw advertising dollars rise 10 percent to $ 1.8 billion.

The addition of Tubi, the ad-supported free streaming service Fox acquired last year, also helped boost sales for the TV unit. While it is still a money-losing company, Tubi is expected to double its sales to around $ 300 million for the fiscal year ending June.

Michael Grynbaum contributed to the reporting.

Categories
Health

Some Child Meals Might Comprise Poisonous Metals, U.S. Studies

Some Baby Food May Contain Toxic Metals, U.S. Reports

While heavy metals are naturally found in some grains and vegetables, levels can be increased when food manufacturers add other ingredients to baby foods such as enzymes as well as high-metal vitamin and mineral mixtures, the report said. Manufacturers rarely test ingredients for mercury.

On August 1, 2019, investigators also described a so-called “secret” presentation by the industry to the FDA. Representatives from Hain told the regulatory authorities that testing only individual ingredients in baby food led to an underestimation of the heavy metal content in the end product.

For example, the inorganic arsenic in Hain’s finished baby formula was between 28 and 93 percent higher than estimated by testing the individual ingredients. Half of the brown rice products were over 100 parts per billion, according to the report.

Robin Shallow, a spokeswoman for Hain Celestial, said the company has not yet seen the report and cannot comment on the details, adding that Hain is continuously developing its internal testing procedures in collaboration with the FDA to ensure our products are safe safety and nutrition exceed standards, including screening for harmful amounts of substances that occur naturally. “

Beech nut, which used ingredients high in arsenic to improve properties like “crumb smoothness” in some products, set very liberal thresholds for arsenic and cadmium in their additives, according to the report: 3,000 ppb cadmium in additives such as vitamin mix and 5,000 ppb lead in one Enzyme additive called BAN 800.

The company used cinnamon, which contained 886.9 ppb lead, according to the report. The company’s standards for cadmium and lead in additive ingredients “far exceed any existing legal standard,” investigators said. Other added spices such as oregano and cumin were also high in lead.

For comparison, the FDA has stated that lead should not exceed 5 ppb in bottled water, 50 ppb in juices, and 100 ppb in candy. Cadmium shouldn’t exceed 5 ppb in bottled water, the agency said. The European Union limits cadmium in infant formula to 15 ppb.

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Business

Chevron and Exxon mentioned merger final 12 months: stories

Chevron and Exxon discussed merger last year: reports

A vehicle drives past an Exxon Mobil Corp. gas station in Arlington, Virginia, United States on Wednesday, April 29, 2020.

Andrew Harrer | Bloomberg | Getty Images

The CEOs of Chevron and ExxonMobil discussed the possibility of a merger of the two companies last year, the Wall Street Journal reported on Sunday, citing unnamed people familiar with the talks.

The newspaper reported that Chevron CEO Michael Wirth and Exxon CEO Darren Woods spoke about the prospect after the Covid-19 pandemic negatively impacted oil prices.

The talks do not continue and have been described as preliminary, according to the journal. Representatives of the two companies declined to comment. The conversations were later reported by Reuters.

A Chevron-Exxon merger would be among the largest in history and likely subject to antitrust scrutiny by the Justice Department under President Joe Biden. Both companies descend from John D. Rockefellers Standard Oil, which was dissolved by the Supreme Court in 1911.

Chevron’s market cap is $ 164 billion and Exxon’s is $ 189 billion, meaning the combined company would be valued at more than $ 350 billion. The combined company would be the second largest oil and gas company in the world after Saudi Aramco.

Oil prices have made up much of their losses since crater formation in March, though they have remained somewhat depressed amid slower-than-expected vaccine rollouts and concerns about new coronavirus variants.

– CNBC’s Pippa Stevens contributed to this report.

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Business

Levi’s (LEVI) experiences This fall 2020 earnings, gross sales beat

Levi's (LEVI) reports Q4 2020 earnings, sales beat

Levi’s clothes can be seen on a store shelf in Miami, Florida.

Joe Raedle | Getty Images

Levi Strauss & Co. reported Wednesday that total sales were down 12% for the vacation quarter. This is an improvement over a decline of more than 20% in the previous period as the weak customer traffic in the branches was partially offset by double-digit online growth.

Stocks recently rose more than 1% in after-hours trading after initially falling more than 4%.

Chief Executive Chip Bergh told CNBC that last quarter’s results exceeded the denim maker’s internal expectations and almost met the “best-case scenario” that Levi put forward when the Covid pandemic first hit the US and many companies bothered.

“We turned very hard [direct to consumer] and in particular for e-commerce, “Bergh said in a telephone interview.” Our e-commerce business was profitable for the fourth quarter and profitable for the full year. “

Levi’s global digital sales, which include online sales of its goods at wholesale partners, represented 23% of sales in the fourth quarter, up from 15% in the year-ago period.

Here’s how Levi Strauss & Co. performed in the fourth quarter of the fiscal year compared to analysts’ expectations using refinitive data:

  • Earnings per share: 20 cents, adjusted compared to 15 cents, expected
  • Revenue: $ 1.39 billion versus $ 1.34 billion expected

For the three-month period ending Nov. 29, Levi made $ 57 million, or 14 cents per share, compared to $ 96 million, or 23 cents per share, the previous year. With no one-time cost, it earned 20 cents per share, which was better than what analysts expected 15 cents using refinitive data.

Net sales decreased 12% from $ 1.57 billion a year ago to $ 1.39 billion. That was better than the $ 1.34 billion forecast by analysts.

Global digital sales increased 34%, including sales on partner platforms like Amazon.

Levi said revenue from its wholesale partners declined 15% in the quarter, while revenue direct to consumers declined 5% due to fewer in-store visits.

As the coronavirus pandemic continues to disrupt normal business operations, around 40% of stores in Europe and 17% worldwide, including franchise-operated locations, are currently closed, according to the company.

“The recent recurrence of the virus underscores that the ultimate effects of the Covid-19 pandemic remain highly uncertain,” Levi said in his earnings announcement. “The company anticipates its business … will continue to be significantly impacted at least in the first half of 2021, and there is still the possibility of additional Covid-19 inventory and other costs.”

Levi stock was up just over 8% year over year at close of trading on Wednesday. The company has a market capitalization of $ 8.8 billion.

The full press release from Levi Strauss & Co. can be found here.

Categories
Health

U.S. experiences document variety of Covid deaths in January

U.S. reports record number of Covid deaths in January

Lila Blanks holds the coffin of her husband Gregory Blanks, 50, who has died of coronavirus disease (COVID-19), before his funeral in San Felipe, Texas, USA, on January 26, 2021.

Callaghan O’Hare | Reuters

The United States started 2021 with the deadliest month of the coronavirus pandemic yet.

The January death toll has already surpassed the previous record number of deaths in December, according to Johns Hopkins University, when over 77,400 people died of Covid-19 in the United States. According to the data, the pandemic has killed more than 79,200 people so far this month.

In the past seven days, the country has reported an average of more than 3,300 deaths from Covid-19 per day, according to Hopkins, up 12% from a week ago.

There is hope that the death toll will slow in the coming weeks. The number of new cases reported daily in the US, which epidemiologists use as a leading indicator of whether the outbreak is increasing or decreasing, has steadily declined in recent days as an increase from interstate travel and holiday celebrations appears to be easing.

The U.S. reported about 146,600 new cases Tuesday, bringing the Hopkins average from seven days to just over 166,300 and about 17% from a week, according to Hopkins.

The number of people currently hospitalized with Covid-19 in the United States is also falling, but remains worryingly high. More than 108,900 people were hospitalized with the disease on Tuesday, according to data from the COVID Tracking Project, which was set up by journalists in the Atlantic. That’s not the high point of the more than 130,000 hospital patients reported earlier this month.

However, the potential spread of new, contagious strains of virus in the US, coupled with a slower-than-expected vaccine adoption, threatens to reverse advances in combating the outbreak.

First discovered in the United Kingdom and become the dominant strain there, the B.1.1.7 strain of the virus has been found in a number of states in the United States. Epidemiologists say the strain appears to be spreading more easily, and British officials have said it could also be more deadly.

As of Monday, the Centers for Disease Control and Prevention said 293 cases related to this strain of the virus had been found in the United States, mainly in Florida and California.

Earlier this week, the Minnesota Department of Health confirmed the first known US case of another strain of the virus that was originally discovered in Brazil. Another so-called worrying variant, named 501Y.V2 or B.1.351 depending on the epidemiologist, was first discovered in South Africa and worries scientists, since vaccines and drugs against this strain seem to be less effective. No cases related to this strain have been discovered in the United States

To curb the spread of the virus and especially the importation of new strains, President Joe Biden banned most non-US citizens traveling from South Africa from entering the US earlier this week, and increased travel restrictions for Europe, the UK and Brazil.

The president painted a dire picture of the outbreak, saying on Monday that the US “will see between 600,000 and 660,000 deaths before we start turning the corner on a large scale”.

While Biden urges people to wear masks and follow public health measures like social distancing, he is working to push the adoption of the Covid vaccines and blaming the Trump administration for the initially slow pace. On Monday, he said the US could surpass 1.5 million vaccinations per day, compared to its previous target of 1 million per day, which the last administration had almost reached.

“Time is of the essence,” he said earlier this week. “We are trying to get at least 100 million vaccinations in 100 days and move in the next 100 days where we are way beyond that to get to the point where we can get herd immunity in a country.” of over 300 million people. “

On Tuesday, he said the government was working to buy an additional 200 million doses of Pfizer’s and Moderna’s vaccines, increasing US supply from 400 million doses to 600 million, although that won’t speed up the pace of vaccinations anytime soon. He also said the administration will increase the number of cans shipped to states each week by about 20%. Some states have stated that they are able to vaccinate more people but are limited by the supply.

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Politics

False Experiences of a New ‘U.S. Variant’ Got here from White Home Process Pressure

False Reports of a New ‘U.S. Variant’ Came from White House Task Force

Reports of a highly contagious new variant in the United States released on Friday by several news outlets are based on speculative statements by Dr. Deborah Birx and are inaccurate according to several government officials.

The flawed report arose recently at a meeting at which Dr. Birx, a member of the White House’s coronavirus task force, presented diagrams of the escalating cases in the country. She suggested to other members of the task force that a new, more transferable variant originating in the US could explain the surge, as did another variant in the UK.

Their hypothesis made it a weekly report sent to the state governors. “This fall / winter rise was almost twice as fast as the spring and summer rise. This acceleration suggests that there may be a US variant that has evolved here, on top of the UK variant that is already spreading in our communities and potentially 50% more transferable, ”the report said. “Aggressive attenuation must be used to match a more aggressive virus.”

CDC officials in dismay tried to remove the speculative statements, but were unsuccessful, according to three people familiar with the events.

CDC officials disagreed with their assessment and asked to have them removed, but they were told no, according to a frustrated CDC official who spoke on condition of anonymity for fear of retaliation.

Dr. Birx could not be reached immediately for comment.

News of a possible new variant appeared on CNBC Friday afternoon and quickly spread to other branches. In response to media inquiries about the variant, the CDC issued a formal statement refuting the theory.

“Researchers from the Centers for Disease Control and Prevention are monitoring all emerging variants of the coronavirus, including the 5,700 samples collected in November and December,” said Jason McDonald, an agency spokesman. “So far, neither CDC researchers nor analysts have seen any particular variant emerge in the US,” he said.

Variants in circulation in the US include B.1.1.7, which was first identified in the UK and is now driving a surge and overwhelming hospitals. The variant has been discovered in a handful of states, but the CDC estimates it currently accounts for less than 0.5 percent of cases in the country.

Another variant that circulates in small amounts in the US, known as B 1.346, contains a deletion that can make vaccines less effective. “But I didn’t see anything about increased transmission,” said Michael Worobey, an evolutionary biologist at the University of Arizona who discovered this variant.

This variant has been in the US for three months and also accounts for less than 0.5 percent of cases. Therefore, it is unlikely to be more contagious than other variants, according to a CDC scientist who spoke on condition of anonymity because he was not authorized to speak about the matter.

All viruses evolve and the coronavirus is no different. “Because of the scientific understanding of viruses, it is very likely that many variants will develop simultaneously around the world,” said McDonald of the CDC. “However, it may take weeks or months to determine if there is a single variant of the virus that is causing Covid-19 to fuel the surge in the US, much like the UK.”

Carl Zimmer reported from New Haven and Noah Weiland from Washington DC

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Health

U.S. stories greater than 4,000 Covid deaths for first time as outbreak worsens

U.S. reports more than 4,000 Covid deaths for first time as outbreak worsens

Vice Mayor Alix Desulme, of North Miami City, raises his arm during a prayer for the local lives lost to COVID-19 as a memorial to the lost is unveiled at Griffing Park in North Miami, Florida on October 28, 2020.

Joe Raedle | Getty Images

More than 4,000 people died of Covid-19 for the first time in one day in the US on Thursday as the country reports record numbers and the outbreak grows worse day by day.

The US has reported a record daily death toll for five of the last 10 days, according to Johns Hopkins University. Over the past week, the US has reported an average of more than 2,700 deaths per day, according to a CNBC analysis of Johns Hopkins data, up 16% from a week ago.

In January alone, almost 20,000 people died of Covid in the country. That set the pace for a month that will likely keep pace with December for the pandemic’s deadliest month yet.

Senior health officials including Dr. Anthony Fauci, director of the National Institute for Allergies and Infectious Diseases, warn that the outbreak is likely to get worse before it gets better.

“We believe the situation will get worse in January,” said Fauci in an interview with NPR on Thursday. He said Americans could still “moderate” that acceleration if they strictly adhere to public health measures like wearing masks and social distancing.

As of Thursday, cases continued to rise rapidly, a sign that more deaths will follow as people are diagnosed, get sick and enter hospitals, many of which are overwhelmed by the flood of Covid patients. The U.S. reported more than 274,700 new cases Thursday, taking the seven-day average to a new all-time high of 228,400, according to Johns Hopkins.

New cases are increasing almost everywhere every day. In 44 states and the District of Columbia, the average number of new cases every day is increasing by at least 5%. New deaths are growing particularly rapidly in Southern California, where healthcare workers are rationing supplemental oxygen and asking ambulances to wait hours before dropping patients off.

In Arizona, too, cases and hospital stays are increasing rapidly, according to Johns Hopkins data, a sign that new deaths may be catching up every day. The Department of Health and Human Services announced Thursday that it will be setting up an infusion center to help administer Covid antibody treatments, which have shown promise in preventing hospital stays if used early on in an infection.

As the outbreak grows worse, many Americans across the country are waiting to receive any of the approved vaccines that are now being distributed. Initial rollout has been sluggish, and the US failed to meet its target of vaccinating 20 million Americans by December, as federal officials aimed to achieve.

Federal officials, including Fauci and Dr. However, Nancy Messonnier, director of the National Center for Immunization and Respiratory Diseases at the Centers for Disease Control and Prevention, have announced that the pace is expected to accelerate this month. The rollout has already shown some signs of a slow increase in speed.

The US fired more than 600,000 shots in a 24-hour period, the CDC reported Thursday. According to the agency, this is the highest value within a day to date. According to the data, more than 21.4 million doses have been given, but only 5.9 million have been given.

Amid criticism of a slow initial rollout, HHS officials are now urging states to move beyond the first level of prioritization. Healthcare workers and residents of long-term care facilities should receive the vaccine first, according to the CDC. But HHS Secretary Alex Azar said earlier this week that states should open up to older and more vulnerable Americans if that would accelerate the pace of rollout.

In addition to the pressure to vaccinate quickly, there is the arrival of a new strain of the virus. The new variant, known as B.1.1.7, which was first discovered in the United Kingdom, has now been found in at least seven states. While it doesn’t seem to make people more sick, CDC officials believe it can spread more easily. That could make the outbreak worse and quickly overwhelm hospitals, CDC officials said last week.

Categories
World News

Alibaba shares fall after reviews of anti-monopoly probe by China

Alibaba shares fall after reports of anti-monopoly probe by China

Alibaba Group’s signage will be displayed during the company’s December 11th Global Shopping Festival on November 11, 2020 in Hangzhou, Zhejiang Province, China.

Aly Song | Reuters

BEIJING – Alibaba’s shares fell in Hong Kong and extended trading in the US when reports surfaced that the Chinese government is conducting an anti-monopoly investigation into the tech giant.

China’s state market regulator said Thursday through official online channels that it had launched an investigation into Alibaba for monopoly practices. The main problem was a practice that forces traders to choose one of two platforms instead of being able to work with both.

The news follows mounting – and largely unexpected – pressure from Chinese authorities to curb their largest tech companies through regulatory action.

Alibaba confirmed the market regulator investigation, saying “business operations remain normal.”

Bloomberg first covered the news announced by the Chinese state news agency Xinhua.

Alibaba’s shares closed more than 8% in Hong Kong on Thursday and fell that amount in New York premarket trading.

The regulators meet with Jack Ma’s other company

Also on Thursday, the Chinese authorities said they would meet with Alibaba subsidiary Ant to monitor the financial technology company on issues such as market-oriented behavior and taking into account the rights and interests of consumers.

People’s Bank of China said on its website that the other participating regulators are the China Banking and Insurance Regulatory Commission, the China Securities Regulatory Commission and the State Administration of Foreign Exchange.

Ant confirmed that he received a notice from regulators for a meeting on Thursday. Last month, regulators abruptly suspended the company’s massive IPO a few days before the planned Hong Kong and Shanghai listing.

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Categories
Business

Nike (NKE) stories Q2 fiscal 2021 earnings, gross sales beat

Nike (NKE) reports Q2 fiscal 2021 earnings, sales beat

Nike reported quarterly sales and earnings on Friday that exceeded analyst estimates. This is due to triple-digit online growth in North America and strong Chinese consumer demand for sneakers and workout clothing.

Due to the pandemic, costs could be reduced as less marketing spending was made at sporting events. The lower costs increased profitability. Strong sales during Alibaba’s Single’s Day in China and Black Friday in the US helped it kick off the holiday season with stock shortages, reducing the need for discounts.

“These are the times when strong brands are getting stronger,” said CEO John Donahoe during a conference call on the results. “Constant changes in the direction of digital, sporty clothing as well as health and wellness continue to offer us incredible opportunities.”

Its stocks jumped more than 4% in trade outside of business hours.

Here’s how the company performed in the second quarter of the fiscal year compared to analyst expectations based on refinitive data:

  • Earnings per share: 78 cents versus 62 cents, expected
  • Revenue: $ 11.24 billion versus $ 10.56 billion expected

For the three-month period ended November 30, Nike reported net income of $ 1.25 billion, or 78 cents per share, compared to $ 1.12 billion, or 70 cents per share, last year. Analysts had demanded a profit of 68 cents per share.

Revenue increased 9% year over year to $ 11.24 billion from $ 10.33 billion last year. That was better than what analysts had expected to be $ 10.56 billion.

According to Nike, digital sales for its eponymous brand rose 84% in the quarter as more shoppers visited the site to purchase sportswear and shoes to help maintain their fitness routines and personal health during the pandemic. This has helped to compensate for declines in wholesale partners and in the company’s own brick and mortar stores, as the global health crisis made fewer people feel good when they left their homes to shop.

Sales for the Converse brand, owned by Nike, declined 1% in the second quarter. According to Nike, thanks to the introduction of yoga and plus sizes, the women’s category has grown faster than business as a whole.

In Greater China, Nike sales grew 24%, compared to just 1% year-over-year growth in North America.

With domestic turf sales stagnating, Nike has doubled in the Chinese market, viewing the region as a key growth opportunity for the brand. Over the summer, a new type of store called Nike Rise opened in a mall in Guangzhou, hosting local meetups for mobile app users.

According to Nike, more than 4 million new customers bought their products during Singles Day, a shopping event hosted by Chinese e-commerce giant Alibaba. Overall, Nike achieved online sales of over half a billion dollars on Singles Day on November 11th.

The retailer also said it had “record” sales online during the week of Black Friday in the US but did not disclose the amount.

Nike stands alongside Lululemon, Dick’s Sporting Goods, and other retailers selling exercise gear and exercise equipment that have recovered faster this year. Other clothing retailers, especially those that deal with workwear and dresses, have problems.

Still, pedestrian traffic in stores in North America, Europe, and Latin America is down year-over-year due to social distancing measures. However, customers who venture into stores are more likely to buy, which increases conversion rates. Ninety percent of the stores are open, but some have reduced hours.

At the close of the market on Friday, Nike shares were up more than 37% this year. The company has a market capitalization of $ 215.5 billion.

The full press release on Nike’s earnings can be found here.