Nike Inc (NYSE:NKE) reported stronger-than-expected results for its third quarter on Tuesday.
The athletic-wear maker out of Beaverton, Oregon reported Tuesday Revenues increased to $10.1 billion in the third quarter, up 5% on a reported basis and up 7% on a currency-neutral basis, driven by 13% currency-neutral growth in NIKE Direct with digital growth of 36% and strong growth across EMEA, APLA and North America, offset by the impact of COVID-19 on our business in Greater China.
Digital sales in Greater China increased more than 30% while brick and mortar retail sales were impacted by temporary store closures related to COVID-19.
Said CEO John Donahoe, “In an extraordinarily dynamic time, NIKE’s strong results are testament to our deep consumer connections, compelling product innovation and agile teams around the world. We know it’s in times like these that strong brands get even stronger. As we start to see recovery in China, no one is better equipped than NIKE to navigate the current climate.”
Diluted earnings per share for the quarter was $0.53, including a $0.25 non-recurring, non-cash charge related to our entry into definitive agreements to transition our Brazil, Argentina, Chile and Uruguay businesses to a strategic distributor model. Diluted earnings per share were also adversely impacted by COVID-19.
In the third quarter, on a currency-neutral basis, Greater China revenues were down 4% following 22 consecutive quarters of double-digit growth.
However, during the first two months of the third quarter, Greater China’s revenue grew strong double digits, offset by the impacts of COVID-19 beginning in late January.
NIKE shares vaulted $5.26, or 7.3%, to $77.59