NIKE, Inc. reported fiscal 2020 financial results for its third quarter ended 29th February, 2020.
Revenues increased to $10.1 billion in the third quarter, up 5 percent on a reported basis and up 7 percent on a currency-neutral basis, driven by 13 percent currency-neutral growth in NIKE Direct with digital growth of 36 percent and strong growth across EMEA, APLA and North America, offset by the impact of COVID-19 on our business in Greater China. Digital sales in Greater China increased more than 30 percent while brick and mortar retail sales were impacted by temporary store closures related to COVID-19.
Net income decreased 23 percent to $847 million and diluted earnings per share decreased 22 percent to $0.53. Diluted earnings per share for the quarter was $0.53, including a $0.25 non-recurring, non-cash charge related to the entry into definitive agreements to transition our Brazil, Argentina, Chile and Uruguay businesses to a strategic distributor model. Diluted earnings per share was also adversely impacted by COVID-19.
“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,” said John Donahoe, President and CEO, NIKE, Inc.
“As we close Q3, NIKE’s Brand leadership and business momentum have been stronger than ever and unrivaled around the world. Amidst the dynamics that all are facing, we are executing against an operational playbook that will expedite NIKE’s return to profitable, capital efficient growth leveraging our strong financial position, the strongest partnerships across the value chain in our industry, and our leading digital capabilities,” said Andy Campion, Executive Vice President and Chief Financial Officer, NIKE, Inc.
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During the third quarter, NIKE, Inc. repurchased 9.6 million shares for approximately $957 million as part of the four-year, $15 billion program approved by the Board of Directors in June 2018. As of 29th February, 2020, a total of 43.3 million shares had been repurchased under this program for approximately $3.9 billion.