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Shares of the company were up 12.6% at $131.6 in premarket
trading.
The brand's digital sales, especially in North America, helped
offset fall in sales at traditional brick-and-mortar stores due
to COVID-19 restrictions and social-distancing measures.
At least seven brokerages raised their 12-month price targets on
the stock with the biggest bump coming from Jefferies analysts,
who raised their target to $117 from $95.
Jefferies analyst Randal Konik said that improvement in North
America is the "biggest positive surprise" from Nike's results,
and expects the Beaverton, Oregon-based company to do well in
the long term, as consumers focus more on health and wellness.
Nike's results should come as a relief to investors after the
company, just a quarter ago, reported a surprise loss of $790
million as retailers canceled orders and people kept away from
Nike stores in key markets including North America, Europe and
China.
"Nike offered its clearest signal yet that a higher digital mix
and improving margins within the digital segment will push
consolidated margins above historical levels," Credit Suisse
analyst Michael Binetti said.
(Reporting by Aakash Jagadeesh Babu and Aniruddha Ghosh in
Bengaluru; Editing by Vinay Dwivedi)
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