Nike (NKE) reported fiscal third-quarter sales that topped expectations and in-line earnings results, reflecting still-strong fundamentals through February even as the coronavirus outbreak generated a host of disruptions for the athletic-wear maker.
Here were the main results from the report, compared to consensus data compiled by Bloomberg:
Revenue: $10.1 billion vs. $9.55 billion expected
Earnings per share: 53 cents vs. 53 cents expected
Gross margin: 44.3% vs. 44.2% expected
Shares of Nike rose 4.5% in late trading to $75.39 apiece after results were released.
“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,” CEO John Donahoe said in a statement. “As we start to see recovery in China, no one is better equipped than Nike to navigate the current climate.”
Nike has been one of many retailers suffering disruptions as the Covid-19 outbreak grips the globe. Earlier this month, the company temporarily closed all 384 retail locations in the U.S., along with stores in Canada, Western Europe, Australia and New Zealand, until March 27. Customers in these regions are still able to make purchases online. These closures, however, were not reflected in results for the most recently reported quarter, which ran through the end of February.
However, Nike anticipated a “material impact” on its operations in Greater China for the fiscal third quarter due to the coronavirus outbreak taking place there earlier in the year. Nike cut store hours in China during the height of the outbreak, although most physical locations there returned to normal operations by mid-March. Nike derived 16% of revenue from Greater China in 2019.
Once a consistent outperformer, the athletic-wear maker has so far seen its losses surpass those of the S&P 500 this year. Nike shares dropped nearly 30% for the year to date through Tuesday, versus a 25% decline in the broader market.
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Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter: @emily_mcck
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