Nike’s 3Q16 results: Broad-based geographic growth

The world’s largest athletic gear company Nike (NKE) declared its fiscal 3Q16 earnings on March 22, 2016, after the close of the market. The quarter ended on February 29.

Nike’s performance in the quarter was upbeat. Strong product demand boosted its revenue and earnings. In constant-currency terms, NIKE Brand sales rose in almost all key product categories and in every geography.

Nike’s Fiscal 3Q16 Results Show Earnings Momentum

Discussing the company’s performance on the earnings call, Nike’s CEO Mark Parker said, “The greatest sport moments are when we deliver our best for the athlete. We turn their insights into amazing breakthroughs. . .and scale them across our diverse portfolio of categories. It’s how we turn the energy of sport into momentum for our business, for years to come.”

Nike beats earnings expectations for the 15th straight quarter

Nike beat the Wall Street consensus on its adjusted earnings per share (or EPS) by a long shot. This was the 15th consecutive quarter of earnings beats by the company. The company posted EPS of $0.55 in fiscal 3Q16, well ahead of the $0.49 projected by analysts.

However, the world’s largest sports gear company came slightly short on revenue expectations. Despite an 8% rise in fiscal 3Q16 revenue to $8.1 billion, Nike missed the consensus revenue forecast by ~2%.

How have Nike’s peers performed?

Nike’s peers Under Armour (UA), Columbia Sportswear (COLM), and Adidas (ADDYY) beat the Wall Street consensus on both revenue and EPS in 4Q15. However, VF Corporation (VFC) missed on both revenue and EPS in 4Q15. Lululemon Athletica (LULU) is slated to declare its fiscal 4Q16 and 2016 earnings results on March 30.

S&P 500 index component NKE makes up 0.48% of the portfolio holdings of the SPDR S&P 500 ETF (SPY).

Read about the drivers fueling Nike’s revenue performance in the next article.

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