Nike Inc (NYSE:NKE) Reports 20% Rise in Q3 Profit, Revenue Up 5%

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Nike Inc (NYSE:NKE) Reports 20% Rise in Q3 Profit, Revenue Up 5%

Nike Inc (NYSE:NKE) reported mixed earnings for its fiscal 2017 third quarter ended February 28. The company reported net income of $1.1 billion, or $0.68 per share, up 20% on a currency-neutral basis from $950 million a year ago. Its revenue was $8.4 billion, versus $8.0 billion a year ago, a 5% increase.

Analysts were expecting the retailer to report earnings per share of $0.53 on revenue of $8.5 billion, according to Thomson Reuters consensus estimates, CNBC reported.

Revenue for the NIKE Brand was $7.9 billion, up 7% on a currency-neutral basis, driven by double-digit growth in Western Europe, Greater China, and the Emerging Markets as well as the Sportswear and Jordan Brand categories, Nike said in its earnings report.

Revenues for Converse were $498 million, up 3% on a currency-neutral basis, driven by growth in North America.

In China, the company’s sales in footwear and apparel segments jumped 14% and 22%, respectively, excluding currency changes for the quarter. Revenue for footwear increased 8% in Japan, and sales from Japan’s apparel business jumped 21% in the quarter.

Gross margin contracted 140 basis points to 44.5%, as higher average selling prices were more than offset by higher product costs, unfavorable changes in foreign exchange rates and the impact of higher off-price sales, the retailer said.

During the quarter, Nike Inc (NYSE:NKE) repurchased a total of 8.9 million shares for about $475 million.

The repurchases were part of the four-year, $12 billion program approved by the company’s board of directors in November 2015. Under the program, Nike has repurchased a total of 64.9 million shares under the program for about $3.6 billion.

Nike has been facing an intensifying competition from Under Armour and Adidas, according to CNBC.

Nike Inc (NYSE:NKE) has a market cap of more than $97 billion. The company’s stock is up more than 14% for the year. Shares have jumped nearly 11% during the last three months, and 4.82% during the last six month. However, the stock has dropped nearly 8% during the last 12 months.