NIKE Inc. reported higher-than-expected fiscal third-quarter earnings per share as sales in some of its international markets grew at a double-digit pace.
The athletic footwear giant reported diluted earnings per share of 68 cents for the quarter ended Feb. 28, up 24% from 55 cents a year ago. That figure came in well above the consensus mean of analyst estimates for normalized EPS of 53 cents, according to data provided by S&P Capital IQ.
Net income for the quarter grew 20% to $1.14 billion from $950 million a year ago. Nike said revenue growth, a decline in selling and administrative expenses, a lower tax rate, a boost from foreign currency exchange gains and a reduction in the weighted average of diluted common shares outstanding boosted its profitability.
The company said it booked $88 million of gains, comprised mainly of foreign currency exchange gains. Meanwhile, Nike said an increase in its earnings from outside the United States helped reduce its effective tax rate for the quarter to 13.8% from 16.3%.
Income before income taxes grew to $1.32 billion from $1.14 billion for the same period a year prior, a jump of close to 15.8%.
Third-quarter revenue increased 5% to $8.43 billion from $8.03 billion for the same period a year prior, while selling and administrative expenses declined 3% to $2.50 billion from $2.57 billion. Nike touted double-digit sales growth in Western Europe, China and emerging markets, as well as in the categories of sportswear and Jordan-branded goods.