Nike Beats Quarterly Revenue Estimates as Digital Growth Offsets China Sales Drop
Nike, Inc (NKE) reported better-than-expected quarterly revenue as digital demand offset a sales decline in China resulting from the coronavirus shutdowns.
Revenues for the third quarter ended Feb. 29, rose 5% to $10.1 billion as overall digital growth increased 36% during the same period, the company said late on Tuesday. Greater China revenues dropped for the first time in 22 consecutive quarters of double-digit growth, declining 4% during the period. Diluted earnings per share slid 22 percent to $0.53.
The analyst community remains bullish on Nike’s prospects. Sixteen Buys and three Holds over the last three months coalesce into a Strong Buy consensus rating. The average price target comes in at $97.18 and implies potential gains of 34% in the next 12 months. (See Nike’s stock analysis on TipRanks)
During the third quarter, Nike repurchased 9.6 million shares for about $957 million as part of its four-year, $15 billion program approved by the Board of Directors in June 2018. As of February 29, 2020, a total of 43.3 million shares had been repurchased under this program for about $3.9 billion.
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