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Nike reports 7 percent revenue growth in Q3

By Prachi Singh

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Business

Nike, Inc. has said that revenue growth of 7 percent or 3 percent on currency neutral basis to 9 billion dollars in its third quarter was led by international geographies and Nike Direct globally. Diluted net loss per share was 0.57 dollar, reflecting significantly higher income tax expense from the enactment of the Tax Cuts and Jobs Act. The impact of the Tax Act, Nike said, resulted in one-time provisional charges that reduced diluted earnings per share by 1.25 dollars.

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“Nike’s Consumer Direct Offense drove strong double-digit growth across our international geographies, led by Greater China,” said Mark Parker, Chairman, President and CEO, Nike in a statement.

Third quarter Nike brand revenue up 4 percent

Revenues for the Nike brand, the company added, were 8.5 billion dollars, up 4 percent on a currency-neutral basis, driven by Greater China, EMEA and APLA, including double-digit growth in NIKE Direct and growth in sportswear and Nike basketball.

Revenues for Converse were 483 million dollars, down 8 percent on a currency-neutral basis, as international and digital growth were more than offset by declines in North America.

Gross margin declined 70 basis points to 43.8 percent due to unfavourable changes in foreign currency exchange rates, which were partially offset by lower product costs. Income before income taxes decreased 12 percent to 1.2 billion dollars as the company said, solid revenue growth was more than offset by lower gross margin, higher selling and administrative expense and lower other income. Net loss was 921 million dollars.

Picture:Nike website

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