NIKE, Inc. (NYSE: NKE)
Shares of Nike surged more than 5% in after-hours session on Thursday to exchange hands at $68. The climb came even after the footwear and apparel giant reported a surprise third-quarter loss due to the recent tax law that was signed by President Donald Trump in December.
However, Nike posted a positive figure in its total sales during the period to surpass analysts’ expectations.
NKE Earnings & Outlook
The company said it made a loss of 57 cents per share, or $921 million during the third quarter, compared to earnings of 68 cents per share, or $1.1 billion, in the same period last year. Revenue shot up to 9 billion representing a 7% rise, versus last year’s $8.4 billion. According to an article on the Market Watch website, analysts had been expecting the company to announce earnings per share of 53 cents on $8.8 billion sales.
Nikes earnings were boosted by growth in sales of its products in Latin America and Asia. But, the company reported weak sales of its footwear products in North America. Its earnings per share (EPS) was reduced by $1.25 in a one-time tariff that that emanated from the new tax law.
Nike’s CEO Comments
During the presentation of the company’s Q3 earnings report, Nike Chief Executive Officer Mark Parker announced that they would respond to the sliding sales of its products in North America by forecasting a return to growth in the next few months. The CEO also addressed the company’s internal uncertainty that triggered the departure of two of its top officials this month. Commenting on the crisis for the first time in a public forum, Parker said that the executives’ behavioral issues were not consistent with the company’s empowerment, inclusivity and respect values.
NIKE, Inc. Company Profile
The headquarters of Nike are in Beaverton, Oregon. The company was founded in 1964 and was previously called Blue Ribbon Sports, Inc. Together with franchises, Nike engages in the design, development, marketing and selling of athletic apparel, footwear, accessories, and equipment in various countries around the world. NIKE branded products are available in the following categories: NIKE basketball, football, action sports, golf, the Jordan brand, women’s training, men’s training, running, and sportswear.
Nike also makes and sells kids products, and other recreational and athletic uses, like volleyball, cricket, wrestling, walking, lacrosse, outdoor activities, and tennis. The company also partners with licensed professional and college teams to make their jerseys. Other products that the company is known to make include digital devices, gloves, bags, sports balls, bats, eyewear, protective equipment, timepieces, and digital devices.
The main competitors of Under Armour, Nike, Inc. are Li Ning, Puma, V.F. Corporation, Adidas, Lululemon Athletica, and ASICS. –Reuters