Nike Inc. (NYSE: NKE) reported its third quarter financial results and beat estimates in both revenue and earnings. Shares rose more than 7 percent during Thursday’s after-hours.
For the third quarter, Nike reported revenue of $9.0 billion, increasing 7 percent year over year, and beating analysts’ estimates of $7.6 billion. Revenue for the Nike Brand alone was $8.5 billion, driven by strong sales in Asia and Europe. Converse sales fell by 8 percent to $483 million.
Greater China showed the strongest quarterly growth of 24 percent year over year. Europe reported sales increase of 19 percent year over year, then Asia Pacific, growing by 11 percent year over year.
“NIKE’s Consumer Direct Offense drove strong double-digit growth across our international geographies, led by Greater China,” said Mark Parker, President and CEO of Nike.
Nike reported a net loss of $921 million and diluted EPS of $0.57. Excluding taxes and charges, Nike reported an EPS of $0.68, beating analysts’ estimates of $0.53.
North American fell was the only segment to report declining revenues, but Parker said in the earnings transcript that he sees a reversal in North American revenue coming soon.
“As we close Q3, we now see a significant reversal of trend in North America, as momentum accelerates through the scaling of new innovation platforms and differentiated NIKE Consumer Experiences expand across the marketplace.” said Parker.
Nike’s Chief Financial Officer, Andy Campion said on Thursday he expects U.S. sales to turn positive and grow again by the first half of fiscal year 2019. For the current quarter, the company expects revenue to be flat.