Nike stock price soared more than 12% after reporting stronger than expected revenue and earnings growth for the first quarter, with an indication that its sales and earnings growth will accelerate in the coming quarters.

The company saw direct sales growth of 12% year over year to $3.7 billion, with growth across all geographies. In addition, NIKE brand digital sales grew 82% from the past year period, driven by double-digit growth across Greater China, North America, and APLA. The digital sales jumped at a triple-digit rate in EMEA.

NKE NIKE, Inc. daily Stock Chart

On the negative side, the company experienced lower physical traffic in the wholesale business and NIKE-owned stores. This is only due to health restrictions and the threat of coronavirus spread. Consequently, its total first-quarter sales of $10.6 billion remained flat compared to the past year period.

Investors and market analysts also applauded its earnings growth potential. The company has successfully turned revenues into big profits. Its earnings per share surged 10% from the year-ago period.

“Our results this quarter continue to demonstrate NIKE’s full competitive advantage, as we strengthen our position in the midst of disruption,” said John Donahoe, President, and CEO, NIKE, Inc.

“In this dynamic environment, no one can match our pace of launching innovative products and our Brand’s deep connection to consumers. These strengths, coupled with our digital acceleration, are unlocking NIKE’s long-term market potential,” John Donahoe added.

The company appears in a strong cash position to offer cash returns to investors. It returned almost $383 million to investors in the form of dividends during the first quarter, up 11% from the same period last year. It has raised dividends in the past 18 consecutive years.

Nike stock price is currently hovering around an all-time high of $130. The shares are up 12% since the beginning of this year, accelerating the twelve months gains to 30%.