BEAVERTON, Ore.: NIKE, Inc. Tuesday reported fiscal 2020 financial results for its third quarter ended February 29.
Revenues rose 5% on a reported basis and 7% on a currency-neutral basis while digital sales were up 36% versus the prior year.
Revenues increased to $10.1 billion in the third quarter, up 5% on a reported basis and up 7% on a currency-neutral basis, driven by 13% currency-neutral growth in NIKE Direct with digital growth of 36% and strong growth across EMEA, APLA and North America, offset by the impact of COVID-19 on business in Greater China.
Digital sales in Greater China increased more than 30% while brick and mortar retail sales were impacted by temporary store closures related to 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 start to see recovery in China, no one is better equipped than NIKE to navigate the current climate.”
Diluted earnings per share for the quarter was $0.53, including a $0.25 non-recurring, non-cash charge related to our 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.
“As we close Q3, NIKE’s Brand leadership and business momentum have been stronger than ever and unrivaled around the world,” said Andy Campion, executive vice president and chief financial officer, NIKE, Inc. “Amidst the dynamics that we 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.”**
COVID-19 Update
Operations in Greater China were materially impacted as a result of COVID-19. In the third quarter, on a currency-neutral basis, Greater China revenues were down 4% following 22 consecutive quarters of double-digit growth.
However, during the first two months of the third quarter, Greater China’s revenue grew strong double digits, offset by the impacts of COVID-19 beginning in late January. At the peak in February, roughly 75% of NIKE-owned and partner doors in Greater China were closed with others operating on reduced hours. Currently, nearly 80% of doors are open in Greater China with an even higher rate in key cities.
Beginning March 16th, all NIKE-owned stores, outside of Greater China, Japan and Korea were closed to help curb the spread of COVID-19.
