Retail therapy may be real if Nike has anything to say about it. Nike’s stock popped by more than 2% during afternoon trading hours after it reported its third quarter earnings.
The athletic apparel maker ran past Wall Street’s expectations. The company generated revenue during the period $12.43 billion, or $0.98 cents per share after adjusting for costs. Analysts had predicted it would generate $12.28 billion, or $0.75 cents per share.
The rise in revenue was primarily driven by its North America and China markets.
Beaverton, Oregon-based Nike reported earnings of $1.17 billion during the period which ended Feb. 29.
Nike Chief Executive John Donahoe said during the company’s earnings call that “Nike is not performing at its potential,” and “it’s been clear we need to make certain adjustments.”
The company plans to address those gaps by increasing new product innovation, sharpening its brand image with sports, making bolder marketing campaigns, and working with partners, Donahoe told investors.
The company’s plans to scale have already begun. During the earnings call, Nike said it is planning to use sport’s biggest stage — the Olympics, which take place this summer in Paris — to “drive major advancements” as Nike leans into its customer base of athletes.
On Thursday, Nike said it had reached an agreement with German soccer federation DFB to be the main supplier of apparel and equipment for all of the country’s national teams starting in 2027.