For the third quarter, the athletic giant reported that revenues grew slightly over last year to $12.4 billion, ahead of the $12.28 billion expected by analysts surveyed by Yahoo Finance and ahead of prior guidance from the company. Net income was down 5 percent to $1.2 billion and diluted earnings per share was 77 cents, which included 21 cents a share of restructuring charges. This was ahead of the 74 cents expected by analysts.
“We are making the necessary adjustments to drive Nike’s next chapter of growth,” the group’s president and chief executive officer John Donahoe said in a statement. “We’re encouraged by the progress we’ve seen, as we build a multiyear cycle of new innovation, sharpen our brand storytelling and work with our wholesale partners to elevate and grow the marketplace.”“Our teams are focused on what matters most to return to strong growth,” Friend said.
By channel, Nike Direct revenues were slightly up in the third quarter to $5.4 billion. Nike Brand Digital sales were down 3 percent on a reported basis and 4 percent on a currency-neutral basis. Wholesale revenues were up 3 percent to $6.6 billion. Gross margin increased 150 basis points to 44.8 percent, driven by “strategic pricing actions and lower ocean freight and logistics costs, partially offset by higher product input costs and restructuring charges,” Nike said in a statement.
Nike did not immediately provide an update on its full-year outlook. In the second quarter, the company said it expected fourth-quarter revenue to be up in the low-single digits and full-year revenue to be up 1 percent compared to the prior year.. We use vendors that may also process your information to help provide our services. // This site is protected by reCAPTCHA Enterprise and the Google. We use vendors that may also process your information to help provide our services.