NIKE has reported financial results for its fiscal 2019 third quarter ended February 28, 2019.
Overall revenues for NIKE increased 7% to US$9.6 billion, up 11% on a currency-neutral basis. Revenues for the NIKE Brand were $9.1 billion, up 12% on a currency-neutral basis. This was driven by growth across wholesale and NIKE Direct, categories including Sportswear and Jordan, and continued double-digit growth across footwear and apparel.
“In Q3, our team once again drove strong, healthy growth across NIKE’s complete portfolio,” said Mark Parker, Chairman, President and CEO at NIKE. “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.”
Diluted earnings per share for the quarter was US$0.68 driven by strong revenue growth and gross margin expansion, partially offset by higher selling and administrative expenses. In the prior year period, a diluted loss per share reflected the enactment of the US Tax Cuts and Jobs Act which has impacted comparability with the current period.
“The Consumer Direct Offense is delivering broad-based growth across all four of our geographies, led by continued momentum in China,” said Andy Campion, Executive Vice President and Chief Financial Officer at NIKE. “We will continue investing in key capabilities to drive NIKE’s digital transformation and fuel strong profitable growth into next fiscal year and beyond.”
Inventories for NIKE were US$5.4 billion, up 1% compared to the prior year period, primarily driven by strong demand for key franchises resulting in ‘healthy inventories across all geographies’.
During its fiscal third quarter, NIKE repurchased 9.8 million shares for a total of US$754 million. During the quarter, the company completed the four-year, US$12 billion program authorized by the Board of Directors in November 2015. It commenced a new four-year, US$15 billion share repurchase program, which was authorized in June 2018.