Nike posts mixed quarterly results, stocks slid
The firm expects to resume its existing share repurchase program in the fourth quarter of fiscal 2021
Stocks impacted: Nike (NKE)
Nike reported fiscal 2021 financial results for its third quarter ended February 28, 2021. Revenues were $10.4 billion, up 3% compared to the prior year but down 1% on a currency-neutral basis. Nike reported a net income of $1.45 billion, or 90 cents per share, compared with $847 million, or 53 cents per share, a year earlier. The result was better than the 76 cents per share expected. Meanwhile, total sales rose to $10.36 billion from $10.1 billion a year earlier but were lower than expected. Of note, the company’s digital sales surged 59% in the third quarter, after accelerating to 84% growth in the previous fiscal quarter amid the pandemic. in the accompanying statement, the firm said that the revenue performance was impacted by disruption related to the COVID-19 pandemic, particularly in North America and EMEA. Nike also noted that it expects to resume its existing share repurchase program (which was suspended in the fourth quarter of last year) in the fourth quarter of fiscal 2021. The company’s stocks closed 1.14% lower, extending losses to -4% in after-hours trading.
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