Highlights From Nike’s Q3 Fiscal Earnings Report
NIKE, Inc. (NIKE) is the world’s top designer, marketer, and distributor of athletic footwear, equipment, apparel, and accessories. The Beaverton, Oregon based company offers products for a wide variety of sports and fitness activities.
Nike recently reported earnings for its Q3 fiscal 2018 and saw a $0.57 net loss per share as a reflection of the Tax Cuts and Jobs Act and missed analysts estimates of $.555/share. The Tax Act also resulted in a one-time contingent charge that cut diluted earnings per share by $1.25. Overall all net loss was $921M and diluted net loss per share was $0.57, numbers both heavily impacted by the Tax Act. The effective tax rate was 179.5% & was driven by the Tax Act.
The company repurchased 14.6M shares for about $962M as part of a four-year $12B program that was approved by the Board of Directors in November 2015.
Nike’s revenue reported at $9B was a 7% increase. Due to adverse changes in foreign currency exchange rates, the gross margin declined 70 basis points to 43.8%.
Selling and administrative expenses increased 11% to $2.8B. With revenue growth offset by lower gross margins and the increased selling and administrative expenses, income before tax decreased 12 percent to $1.2B.
“NIKE’s Consumer Direct Offense drove strong double-digit growth across our international geographies, led by Greater China. As we close Q3, we now see a significant reversal of trend in North America, as momentum accelerates through the scaling of new innovation platforms and differentiated NIKE Consumer Experiences expand across the marketplace.” – Mark Parker, Chairman, President and CEO, NIKE, Inc
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