US: Higher sales and margins boost Nike Q3
- Q3 earnings up 3%
- Gross margin up at 44.5%
- Sales grow 13%
Nike said it delivered strong results in Q3
Higher revenues, margin expansion and a lower tax rate helped boost earnings for sporting goods giant Nike Inc in its third-quarter.
In the three months ended 28 February, net income edged up 3% to US$685m from $662m a year earlier thanks to a jump in revenue in Western Europe, gross margin expansion of 30 bsp to 44.5%, and a lower tax rate. This was partially offset by higher SG&A investments.
Gross margin benefited from higher average prices and continued growth in the higher margin direct to consumer business, and was partially offset by higher product input costs, unfavourable foreign exchange rates, and higher discounts.
Revenues were up 13% to $6.97bn from $6.19bn a year earlier. Sales for the Nike brand grew 14% to $6.6bn, while Converse sales were up 16% to $420m, primarily driven by a strong performance in the brand's largest direct distribution markets of the US, China and the UK.
"Our strong Q3 results demonstrate our relentless focus on delivering innovations that resonate with consumers," said CEO Mark Parker.
"Despite macroeconomic challenges, Nike delivers consistent results because we focus on the biggest opportunities for growth while we manage risk across our diverse global portfolio. This is how we continue to drive long-term value for our shareholders."
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