Nike Reports Blowout Earnings in the Face of COVID-19
publication date: Mar 25, 2020
Image Shown: Shares of Nike reclaimed some of their lost ground on March 25 after the sports apparel company reported a blowout earnings report.
On March 24, Nike Inc reported blowout earnings for its third quarter of fiscal 2020 (period ended February 29, 2020) with its revenues and non-GAAP EPS figures coming in well above consensus estimates. The sports apparel firm’s sales rose by 5% year-over-year on a GAAP basis, and 7% on a constant currency non-GAAP basis, due to strong growth at its Nike Direct offering (a digitally oriented direct to consumer distribution system) which helped drive 36% digital sales growth. Please note that Nike sold off its Hurley brand last fiscal quarter, which management noted shaved 100-200 basis points off Nike’s North American sales growth. This strength in the face of the ongoing novel coronavirus (‘COVID-19’) pandemic saw shares of NKE leap during the trading session on March 25.
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