Nike’s bullish fourth quarter earnings report and forward guidance pulled a bevy of retail stocks higher in trading Friday morning — along with its own shares, of course.
Shares in Foot Locker, Dick’s Sporting Goods, Hibbett — and even Adidas and Under Armour — gained in early trading after Nike showcased its market dominance, despite a year full of pandemic-related shipping issues that negatively impacted inventories. The Swoosh posted record fourth quarter revenues and provided upside guidance for fiscal 2022 and beyond.
“It’s safe to say that we’re more confident than ever in our product pipeline as our focus on the consumer of the future drives our relentless innovation engine,” said John Donahue, Nike president and CEO, on the company’s earnings call Thursday afternoon.
Referencing its laser focus on its digital, retail and owned retail store business, Donahue also said the company is “actively engaged with our strategic wholesale partners who share our vision.”
“Today, we’re working closely with large strategic partners like Dick’s Sporting Goods, Foot Locker and JD Sports as well as compelling local neighborhood partners who are authentic to sport performance and lifestyle,” said Donahue. “Together, we are driving change to create a new, more connected and seamless experience for consumers around the world, which is exactly what consumers want.”
Nike has been culling its list of retail partners since 2017 as part of a holistic direct-to-consumer strategy. The sportswear giant recently severed ties with several retailers including DSW, Urban Outfitters, and Shoe Show, representing nearly 3,000 stores across the US. That’s in addition to earlier news that the company stopped selling to retailers such as Belk, Dillard’s, Zappos, and Fred Meyer, among other mid-sized chains.
In Friday morning trading, shares in Foot Locker rose 3.4% to $63.23, while Dick’s Sporting Good shares improved 3.8% to $102.43. Shares in Adidas moved up 5.5% to $184.89, Under Armour shares increased 2.4% to $19.08, and Hibbett — which on Thursday changed its name from Hibbett Sports — popped 10% to $85.09.
Nike shares were lately up 14% at $152.16.