Nike shares spike 8% after blockbuster sales

The company reported diluted earnings per share of $0.95 for the three months ended August 31. Revenue was $10.6 billion, down 1% year-over-year. Wall Street analysts had projected earnings per share of $0.47 on revenue of $9.14 billion, according to Refinitiv estimates.

Nike's stock jumped 8% in after-hours trading Tuesday following the report.

Many footwear and apparel companies, including Nike, were hit by store closures and a decline in in-store shopping earlier in the year. In the quarter ended May 31, Nike posted a net loss and 38% decline in revenue.

In the latest quarter, however, Nike said that nearly all of its stores were open, though foot traffic is still lower than usual.

Nike's investments in digital sales significantly boosted sales in the latest quarter.

In recent years, the company has shifted its focus from selling through third-party retailers to leaning on its own direct-to-consumer sales channels and e-commerce business, which positioned it to benefit as more consumers have turned to buying online.

The company said its Nike Brand digital sales grew 82% during the quarter, including triple-digit growth in the Europe, Middle East and Africa market.

"Nike is recovering faster based on accelerating brand momentum and digital growth, as well as our relentless focus on normalizing marketplace supply and demand," Nike CFO Matt Friend said in a release.