Shares of Nike ticked up nearly 3 percent after market close on Thursday as the brand reported a smaller-than-expected drop in third quarter sales.<\/p>\n
Net income at the Beaverton, Ore.-based company in Q3 was $794 million, down 32 percent from $1.2 billion in the year-ago period. Diluted earnings per share was 54 cents, a decrease of 30 percent from 77 cents at the same time last year. Net sales in the period were $11.3 billion, down 9 percent from $12.4 billion, on a reported basis, compared to the prior year. <\/p>\n
The company\u2019s third-quarter results handily beat analyst estimates. Analysts, on average, were expecting earnings per share of 29 cents in the quarter. Revenue also bested analysts\u2019 expectations<\/a> of an 11.5 percent drop, according to data compiled by LSEG.\u00a0<\/p>\n By business segment, the company said Nike brand revenues were $10.9 billion, down 9 percent on a reported basis, driven by declines across all geographies. Nike Direct revenues in Q3 were $4.7 billion, down 12 percent on a reported basis, primarily due to a 15 percent decrease in Nike brand digital and a 2 percent decrease in Nike-owned stores.<\/p>\n As for Nike\u2019s wholesale channel, which the company has steadily worked on rebuilding, revenues in the quarter were $6.2 billion, down 7 percent on a reported basis. Revenues from Converse were $405 million, down 18 percent on a reported basis, due to declines across all territories.<\/p>\n As for footwear sales in the period, Nike said that sales in the category dropped 12 percent to $7.2 billion, down from $8.2 billion in the same time last year. Apparel sales in Q3 were $3.2 billion, down 3 percent from $3.3 billion, while equipment sales were down 2 percent to $477 million, down from $487 million.<\/p>\n Elliott Hill, who took on the role<\/a> of president and chief executive officer of Nike, Inc. in October, said in a statement that the progress the company has made against its \u201cWin Now\u201d strategic priorities implemented 90 days ago reinforces his confidence that Nike is \u201con the right path.\u201d<\/p>\n \u201cWhat\u2019s encouraging is Nike made an impact this quarter leading with sport \u2013 through athlete storytelling, performance products and big sport moments,\u201d Hill said<\/a>.<\/p>\n