Nike reports rise in Q3 revenues and earnings

Nike for the third quarter ended February 28, 2015 said that diluted earnings per share increased 19 percent due to higher revenues as a result of continued strong demand for Nike brands and gross margin expansion, partially offset by higher SG&A investments and a higher effective tax rate. Revenues for Nike rose 7 percent to 7.5 billion dollars, up 13 percent on a currency neutral basis.

“Our strong third quarter results show that our growth strategies are working, even under challenging macroeconomic conditions,” said Mark Parker, President and CEO, Nike.”

Revenues for the Nike brand were 6.9 billion dollars, up 11 percent on a currency neutral basis driven by growth in every geography and in most key categories. Revenues for Converse were 538 million dollars, up 33 percent on a currency neutral basis, mainly driven by continued growth and timing of shipments in North America, the transition to direct distribution in AGS (Austria, Germany, Switzerland) and growth in the Direct to Consumer (DTC) business.

Gross margin expanded 140 basis points to 45.9 percent. Net income increased 16 percent to 791 million dollars, driven by strong revenue growth and gross margin expansion.