Nike shares fell after hours Tuesday, on the heels of announcing a mixed Q3 earnings report where profits exceeded Wall Street’s expectations despite missing revenue estimates, according to CNBC.
The company shared third quarter results for fiscal year 2017, reporting that consumer demand in all geographies drove revenue growth across the Nike brand portfolio.
Diluted earnings per share were up 24 percent and grew faster than revenue, primarily due to selling and administrative expense leverage, a lower effective tax rate and a lower average share count.
Nike Inc. revenue increased 5 percent to $8.4 billion in the third quarter. Net income increased 20 percent to $1.1 billion and diluted earnings per share increased 24 percent to $0.68.
Revenues for the Nike Brand were $7.9 billion, up 7 percent on a currency-neutral basis. The company attributed the boost to double-digit growth in Western Europe, Greater China and emerging markets, as well as its Jordan Brand category.
Footwear sales in China increased 14 percent, while emerging markets saw a 17 percent increase in footwear sales and Western Europe footwear sales increased 6 percent.
North American footwear sales increased 3 percent.
Converse saw revenue increase 3 percent to $498 million, drive by growth in North America.
“The power of Nike’s diverse, global portfolio delivered another solid quarter of growth and profitability,” said Mark Parker, Nike Inc. chairman, president and CEO. “To expand our leadership and ignite Nike’s next phase of growth, we’re delivering a relentless flow of innovation through performance and style, increasing speed throughout the business and creating more direct connections with consumers leveraging digital and membership.”