Nike Inc. posted a net loss for the fiscal third quarter, which the company attributed to $2 billion in additional tax expenses related to U.S. federal tax reform.
The company posted a net loss of $921 million, a drop from profit of $1.14 billion in the same quarter last year. Nike said it recorded additional tax expense of about $2 billion, primarily related to the transition tax on accumulated foreign earnings and the measurement of deferred tax assets and liabilities, stemming from tax reform legislation enacted in December 2017.
The athletic wear company reported a diluted loss per share of 57 cents, citing a one-time and "significantly" higher income tax expense from U.S. federal tax reform for the fiscal third quarter ended Feb. 28. Nike said federal tax reform brought down its diluted EPS by $1.25. The figure fell well short of the analyst consensus mean for GAAP EPS of 53 cents and was well below EPS of 69 cents in the year-ago period.
Nike's revenue, meanwhile, increased 7% to $8.98 billion from $8.43 billion in the year-ago period. That represents a 3% increase on a currency-neutral basis. The company said that international markets, particularly China, led revenue growth. Revenue in greater China increased 24% to $1.34 billion from $1.08 billion year over year.
The company said that as of Feb. 28, 126.4 million shares, worth about $7.2 billion, have been repurchased from a November 2015 $12 billion, four-year share repurchase program. During the fiscal third quarter alone, Nike repurchased 14.6 million shares for about $962 million as part of the program.