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Nike pops after earnings

Nike shares popping after hours following its fiscal Q2 earnings report.

Video Transcript

SEANA SMITH: I want to take a look at Nike because shares are popping here after hours, up almost 5% on the heels of those [INAUDIBLE] 6% on the heels of those better than expected results. Reggie Wade is joining us now for a closer look at some of those numbers that we got. And Reggie, one of the things that we were keeping a close eye on going into this report was performance in China. And Nike continues to outperform in that region.

REGGIE WADE: Yes, it does. And we're making a little fuss about Nike reporting on a Friday when we look at these results. I guess it's much ado about nothing [INAUDIBLE] revenue at 11.2 billion, up 9%, versus 10.55 billion estimated. We see EPS at $0.78 a share, up 11%, versus 62%. And then, we see North American estimates at 4.01 billion. Estimates were around 3.99 billion. So they're in line with that.

And we see China continues to lead in growth-- 24% growth this quarter in China. And that was something that most analysts were looking at because we knew that the China business had come back since they got a handle on their pandemic. The US was still mainly driven by digital. So they were seeing what kind of foot traffic were they going to see out of China, and it looks like they're performing big there.

SEANA SMITH: Reggie, another area or two other areas that outperformed here during this quarter was brand digital sales up 84%, direct-to-consumer sales, 4.3 billion, up 32%. When you see numbers like that, how big of an opportunity is this for Nike? And how much does this give them an edge over some of their competitors here, going into 2021?

REGGIE WADE: This gives them the edge because Nike, quite frankly, is the standard when we look at sportswear and the work from home generation and what people are clamoring for as they sit behind their screens and say which sportswear or apparel brands they're going for. So Nike right now is the gold standard. And that's something that companies like Adidas are going to have a tough hill to climb. So Nike's really in a league of its own. And that's exactly where they like to be.

SEANA SMITH: And Reggie, the earnings call is expected to get underway here in just around 20, 25 minutes. What do you think is going to be on the top of mind here for analysts on this call? What do they want to hear?

REGGIE WADE: I think analysts want to hear, first and foremost, about what's going on overseas. Because we know the situation here in the United States of America. So I expect Nike to lead with China and lead with digital growth. Those are the two twin pillars that are holding Nike up right now and really propelling them. So I suspect that's what they're going to jump off at.

SEANA SMITH: All right, well, Nike, as you can see here, Nike shares getting a boost on the heels of those better than expected results, like Reggie was saying. We were wondering if they had something to hide since they were reporting after the bell on a Friday when they normally don't do that. But you can see another very, very strong quarter for the company. The share is up over 5%, a name to keep on our radars here as we look forward to Monday's opening bell. All right, Reg, thanks so much for sticking around. Have a good weekend. I'll see you next week.

REGGIE WADE: Thank you. Have a great weekend.