ran into a few problems during the fiscal third quarter, but executives also highlighted some of the areas where business stepped into new territory and surged.
One high point was the Jordan brand, which the company said grew double digits. The women’s side of the brand’s business grew even more, up nearly triple digits.
Separately, the company launched a shoe designed for women runners, React Escape.
There was also the launch of the Air Jordan 11 Jubilee, which Chief Executive John Donahoe said on the earnings call was “one of the largest and most successful footwear launches ever, with more than $175 million in revenue.”
The shoe was listed as sold out on Friday morning.
The Nike GO Flyease, a hands-free shoe, also launched during the quarter “for our most engaged members,” Donahoe said, but will be available more broadly later in the year.
The Nike SNKRS app was also a source of innovation, launching livestream events via SNKRS Live in Germany, Japan and Italy.
On the digital front, the company says its owned online business was up 54% in the third quarter, on a currency-neutral basis. In North America, digital revenue reached $1 billion for the first time.
Nike has set a long-term goal to make digital 50% of the company’s business.
And Nike is now linking executive compensation to its diversity goals, a step that McDonald’s Corp. MCD has also taken.
“We see Nike’s brand momentum across geographies as sustainable and providing insulation to macro volatility and supporting at minimum sustainable, multi-year, high-single-digit top-line growth,” JPMorgan analysts wrote in a note.
JPMorgan rates Nike stock overweight with a $176 price target, up from $170.
“Looking forward, we continue to expect Nike’s size and scale to represent structural competitive advantages… and expect the shares to continue compounding higher,” wrote BMO Capital Markets analysts led by Simeon Siegel.
BMO rates Nike stock outperform with a $160 target price.
Baird is not quite as upbeat. Analysts there rate Nike stock neutral with a $150 price target.
“While investors largely should look past near-term disruptions, we still prefer a better entry given already very positive sentiment and some uncertainty about potential margin reinvestment and digital glidepath,” analysts wrote.
Nike shares slumped 3.3% in Friday trading, but have rallied nearly 97% over the last year.
The Dow Jones Industrial Average
is up 62.9% over the past 12 months.