What's going on?

This is Nike�s country, we�re just living in it: the sportswear giant reported strong results on the back of resurgent American sales late last week, and its stock initially jumped 13%.

What does this mean?

Nike�s quarterly revenue and profit both came in ahead of forecasts, while its ecommerce sales kept doing their thing: they were up 41% versus the same time last year. But the real winners were its North American business � whose revenue more than doubled from this time last year to hit a record high � and its wholesale arm. That segment sells the company�s products to the likes of Foot Locker and Dick�s Sporting Goods, and it did well out of the fact that those retailers were actually, y�know, open.

Why should I care?

For markets: It�s about quality, not just quantity.

Nike�s Chinese business made up for a lot of lost growth during the pandemic, but political disruptions in the country can cause issues at a drop of a hat. Case in point: the company expressed concern last quarter about allegations of forced labor in Xinjiang, and consumers threatened to boycott the brand. Investors, then, will have been glad to see Nike�s all-important US market roar back to life � especially since it encouraged the company to up its earnings forecast for the rest of the year.

The bigger picture: Nike and FedEx go hand in hand.

Logistics giant FedEx has been benefiting from Nike and its rival retailers� booming ecommerce sales, and that played a big part in the stronger-than-expected quarterly sales it shared on Friday. The company�s profit would�ve beaten expectations too, but pension-related costs got in the way. That ultimately deterred the company from making an earnings forecast for this year, which might be why � despite everything else going to plan � investors sent its stock down on the announcement.