The Oregon-based sportswear giant reported financial results for its fiscal third quarter. Revenue increased by 7% totalling 9.6 billion US dollars (up by 11% on a currency-neutral basis)
Nike’s revenue growth in the third quarter was driven by broad-based strength across all geographies as well as Nike Direct, led by digital: “In Q3, our team once again drove strong, healthy growth across Nike’s complete portfolio”, commented Mark Parker, Chairman, President and CEO, adding: “Our business momentum is being accelerated by our ability to scale innovation at a faster pace and expand new digital consumer experiences around the world.”
In the third quarter, ended on the 28th of February 2019, revenuefor Nike, Inc. increased by 7% totalling 9.6 billion US dollars, up by 11% on a currency-neutral basis. Revenue for the Nike brand reached 9.1 billion US dollars, up by 12% on a currency-neutral basis driven by growth across wholesale and Nike Direct, categories including Sportswear and Jordan, and continued double-digit growth across footwear and apparel. Revenue for the Converse brand totalled 463 million US dollars, down by 2% on a currency-neutral basis, mainly driven by double-digit growth in Asia and digital which was more than offset by declines in the US and Europe.
Footwear continues to be the main category for revenue generation within the Nike Brand, with 6.1 billion US dollars (up by 13% from similar period in the previous year). Followed by apparel with revenue of 2.7 billion US dollars in the third quarter.
Nike’s net income totalled 1.1 billion US dollars in the third quarter and diluted earnings per share was 0.68 US dollars driven by strong revenue growth, gross margin expansion, the lower effective tax rate and a lower average share count, which were slightly offset by higher selling and administrative expenses.
In the nine months ended on the 28th of February 2019, revenue for Nike, Inc. increased by 9% totalling 28.9 billion US dollars. Revenue for the Nike brand reached 27.5 billion US dollars, up by 12%, and revenue for the Converse brand totalled 1.4 billion US dollars, up by 4%.
North America continues to be the main region for the brand’s revenue, with 2.9 billion US dollars generated here, up by 10%. Greater China continues to be a very dynamic market, growing by 34% from similar period in the previous fiscal year (and representing the second largest geography for Nike with 1-7 billion US dollars of revenue).
Footwear is the category generating more revenue for the Nike brand with 17.7 billion US dollars in the first nine months of the current fiscal year (up by 13%), followed by apparel (8.0 billion US dollars).
In the first nine months of the current fiscal year, Nike’s net income totalled 3.6 billion US dollars.
Photo by Pat Kwon on Unsplash