NIKE, INC. REPORTS FISCAL 2020 THIRD QUARTER RESULTS
https://investors.nike.com/investors/news-events-and-reports/investor-news/investor-news-details/2020/NIKE-Inc-Reports-Fiscal-2020-Third-Quarter-Results/default.aspx
NIKE, Inc. (NYSE:NKE) today reported fiscal 2020 financial results for its third quarter ended February 29, 2020.
- Revenues rose 5 percent on a reported basis and 7 percent on a currency-neutral basis*; Digital sales up 36 percent versus prior year
- Diluted earnings per share was $0.53, including a $0.25 non-recurring, non-cash charge associated with the transition to a strategic distributor model in South America
- Inventory increased 7 percent to $5.8 billion; closeout inventory units declined versus prior year
Revenues increased to $10.1 billion in the third quarter, up 5 percent on a reported basis and up 7 percent on a currency-neutral basis, driven by 13 percent currency-neutral growth in NIKE Direct with digital growth of 36 percent and strong growth across EMEA, APLA and North America, offset by the impact of COVID-19 on our business in Greater China. Digital sales in Greater China increased more than 30 percent while brick and mortar retail sales were impacted by temporary store closures related to COVID-19.
"In an extraordinarily dynamic time, NIKE's strong results are testament to our deep consumer connections, compelling product innovation and agile teams around the world. We know it's in times like these that strong brands get even stronger," said John Donahoe, President and CEO, NIKE, Inc. "As we start to see recovery in China, no one is better equipped than NIKE to navigate the current climate."**
Diluted earnings per share for the quarter was $0.53, including a $0.25 non-recurring, non-cash charge related to our entry into definitive agreements to transition our Brazil, Argentina, Chile and Uruguay businesses to a strategic distributor model. Diluted earnings per share was also adversely impacted by COVID-19.
"As we close Q3, NIKE's Brand leadership and business momentum have been stronger than ever and unrivaled around the world," said Andy Campion, Executive Vice President and Chief Financial Officer, NIKE, Inc. "Amidst the dynamics that we are facing, we are executing against an operational playbook that will expedite NIKE's return to profitable, capital efficient growth leveraging our strong financial position, the strongest partnerships across the value chain in our industry, and our leading digital capabilities."**
COVID-19 Update
As discussed in our press release issued on February 4, 2020, operations in Greater China were materially impacted as a result of COVID-19. In the third quarter, on a currency-neutral basis, Greater China revenues were down 4 percent following 22 consecutive quarters of double-digit growth. However, during the first two months of the third quarter, Greater China's revenue grew strong double digits, offset by the impacts of COVID-19 beginning in late January. At the peak in February, roughly 75 percent of NIKE-owned and partner doors in Greater China were closed with others operating on reduced hours. Currently, nearly 80 percent of doors are open in Greater China with an even higher rate in key cities. Beginning March 16th, all NIKE-owned stores, outside of Greater China, Japan and Korea were closed to help curb the spread of COVID-19.
Nike sales beat analysts' estimates, but earnings fall, hurt by coronavirus pandemic
https://www.cnbc.com/2020/03/24/nike-nke-reports-q3-fiscal-2020-earnings.html
Nike revenue beats as digital growth offsets rare China sales fall on virus hit
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https://www.sec.gov/Archives/edgar/data/320187/000032018720000014/0000320187-20-000014-index.htm
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https://investors.nike.com/investors/news-events-and-reports/investor-news/investor-news-details/2020/NIKE-Inc-Reports-Fiscal-2020-Third-Quarter-Results/default.aspx
NIKE, Inc. (NYSE:NKE) today reported fiscal 2020 financial results for its third quarter ended February 29, 2020.
- Revenues rose 5 percent on a reported basis and 7 percent on a currency-neutral basis*; Digital sales up 36 percent versus prior year
- Diluted earnings per share was $0.53, including a $0.25 non-recurring, non-cash charge associated with the transition to a strategic distributor model in South America
- Inventory increased 7 percent to $5.8 billion; closeout inventory units declined versus prior year
Revenues increased to $10.1 billion in the third quarter, up 5 percent on a reported basis and up 7 percent on a currency-neutral basis, driven by 13 percent currency-neutral growth in NIKE Direct with digital growth of 36 percent and strong growth across EMEA, APLA and North America, offset by the impact of COVID-19 on our business in Greater China. Digital sales in Greater China increased more than 30 percent while brick and mortar retail sales were impacted by temporary store closures related to COVID-19.
"In an extraordinarily dynamic time, NIKE's strong results are testament to our deep consumer connections, compelling product innovation and agile teams around the world. We know it's in times like these that strong brands get even stronger," said John Donahoe, President and CEO, NIKE, Inc. "As we start to see recovery in China, no one is better equipped than NIKE to navigate the current climate."**
Diluted earnings per share for the quarter was $0.53, including a $0.25 non-recurring, non-cash charge related to our entry into definitive agreements to transition our Brazil, Argentina, Chile and Uruguay businesses to a strategic distributor model. Diluted earnings per share was also adversely impacted by COVID-19.
"As we close Q3, NIKE's Brand leadership and business momentum have been stronger than ever and unrivaled around the world," said Andy Campion, Executive Vice President and Chief Financial Officer, NIKE, Inc. "Amidst the dynamics that we are facing, we are executing against an operational playbook that will expedite NIKE's return to profitable, capital efficient growth leveraging our strong financial position, the strongest partnerships across the value chain in our industry, and our leading digital capabilities."**
COVID-19 Update
As discussed in our press release issued on February 4, 2020, operations in Greater China were materially impacted as a result of COVID-19. In the third quarter, on a currency-neutral basis, Greater China revenues were down 4 percent following 22 consecutive quarters of double-digit growth. However, during the first two months of the third quarter, Greater China's revenue grew strong double digits, offset by the impacts of COVID-19 beginning in late January. At the peak in February, roughly 75 percent of NIKE-owned and partner doors in Greater China were closed with others operating on reduced hours. Currently, nearly 80 percent of doors are open in Greater China with an even higher rate in key cities. Beginning March 16th, all NIKE-owned stores, outside of Greater China, Japan and Korea were closed to help curb the spread of COVID-19.
Nike sales beat analysts' estimates, but earnings fall, hurt by coronavirus pandemic
https://www.cnbc.com/2020/03/24/nike-nke-reports-q3-fiscal-2020-earnings.html
Nike revenue beats as digital growth offsets rare China sales fall on virus hit
https://www.reuters.com/article/us-nike-results/nike-revenue-beats-as-digital-growth-offsets-rare-china-sales-fall-on-virus-hit-idUSKBN21B38L
Nike Rallies After Results Suggest It's Weathering Virus Era
https://www.bloomberg.com/news/articles/2020-03-24/nike-sales-top-estimates-as-it-weathers-early-days-of-covid-19
8K:
https://www.sec.gov/Archives/edgar/data/320187/000032018720000014/0000320187-20-000014-index.htm
Footwear & Accessories
https://www.midgardfinance.com/tabulate/FootwearAndAccesories.htm
