Nike (NYSE: NKE) on Thursday reported earnings and revenue that beat analysts' expectations, fueled once again by international growth and momentum within China.
CEO Mark Parker also said he sees a steady sales slump in the U.S. reversing, as the company focuses on adding experiences to stores and scaling new products. He told analysts and investors that the current quarter is already off to a good start in North America, owing much to the record consumer response for new React cushioning technology in sneakers.
The third quarter ended Feb. 28 and Nike's net loss totaled $921 million, or 57 cents a share, compared with net income of $1.14 billion, or 68 cents a share, one year ago. The company reported a higher income tax expense from new U.S. tax laws, which reduced earnings per share by $1.25.
Excluding one-time items, Nike earned 68 cents a share, 15 cents above forecasts.
Revenue for the period climbed roughly 7% overall to $8.98 billion, compared with expectations of $8.85 billion.
Sales in North America were down 6% while those in Greater China jumped 24%. Sales in Nike's division for Europe, the Middle East and Africa grew 19%. Sales in Asia Pacific and Latin America rose 13%.
In recent quarters, Nike has struggled to gain a stronger footing on its home turf, where shoppers are increasingly flooded with options from rivals Adidas and Under Armour (NYSE: UA). Still, the company has seen success overseas, which continues to boost the business.
Nike shares hiked $2.56, or 4%, Friday morning to $66.98
