Sportswear retailer Nike has grown net income to US$1.1 billion over its third quarter, with the group’s consumer-direct approach delivering growth across all four of its geographic regions.
Revenues increased 7 per cent to $9.6 billion, up 11 per cent. The Nike brand contributed $9.1 billion of this, while footwear brand Converse brought $463 million – down 2 per cent compared to the prior corresponding period.
“In Q3, our team once again drove strong, healthy growth across Nike’s complete portfolio,” Nike chairman, president and CEO Mark Parker said.
“Our business momentum is being accelerated by our ability to scale innovation at a faster pace and expand new digital consumer experiences around the world.”
In Asia-Pacific, the group saw footwear sales increase 3 per cent to $909 million, while apparel sales grew 6 per cent to $340 million.
However, sales in the equipment category fell 8 per cent over the period, to $58 million.
Greater China, saw equipment sales stay flat at $29 million, but experienced a strong 21 per cent growth in apparel sales to $444 million, and footwear sales 19 per cent above the prior period at $1.11 billion.
The group’s gross margin increased over the period to 45.1 per cent, driven by higher selling prices, favourable changes in foreign currency exchange rates and growth in Nike Direct.
Additionally, the group’s effective tax rate was 14.7 per cent, compared to 179.5 per cent during the same period last year, which included one-time charges related to the enactment of the US Tax Cuts and Jobs Act, which drove a $921 million loss.