FILE PHOTO: The logo of Nike (NKE) is seen in Los Angeles, California, United States, April 12, 2016. REUTERS/Lucy Nicholson/File Photo
March 22, 2018
(Reuters) – Nike Inc’s <NKE.N> quarterly revenue and profit beat analysts’ estimates on Thursday, helped by robust demand in its international markets and initiatives such as selling directly to customers.
Shares of the Dow component rose nearly 2 percent in extended trade. They had closed down 3 percent at $64.42 in regular trading, primarily after reports investor William Ackman’s Pershing Square had exited the company with a profit of about $100 million.
Sales jumped 24.3 percent in China in the third quarter ended Feb. 28, while they rose 19.4 percent in Europe.
The strong show in international markets helped offset a 6 percent drop in sales in North America, where Nike is battling rival Adidas <ADSGn.DE>.
“As we close Q3, we now see a significant reversal of trend in North America,” CEO Mark Parker said in a statement.
However, the company reported a net loss of $921 million, or 57 cents per share, compared with a profit of $1.14 billion, or 68 cents per share, a year earlier.
The company recorded a one-time charge of $2 billion in the reported quarter related to the recently enacted U.S. tax law.
Excluding the charge, the company earned 68 cents per share.
Revenue rose 6.5 percent to $8.98 billion.
Analysts on average had expected adjusted earnings of 53 cents per share and revenue of $8.85 billion, according to Thomson Reuters I/B/E/S.
(Reporting by Nivedita Balu in Bengaluru; Editing by Sriraj Kalluvila)
