Nike beats 3Q18 top-line expectations
Nike reported 3Q18 results on March 22. Its top line improved 6.5% YoY (year-over-year) to $8.98 billion, exceeding the consensus expectations by around $133 million.
Behind this growth was a double-digit rise in the company’s international sales and its Global Direct business. A decline in its North American Wholesale business partly offset this rise in sales. The company benefitted from currency adjustments during the quarter, as sales were up 3% on a currency-neutral basis.
“NIKE’s Consumer Direct Offense drove strong double-digit growth across our international geographies, led by Greater China,” said Mark Parker, Nike’s chair, president, and CEO.
Read the next section to learn the about the performance of Nike’s products in its key markets.
Nike acquires data analytics firm Zodiac
Nike also announced the acquisition of Zodiac, a leading consumer data analytics firm. The sportswear giant plans to use Zodiac’s technological platform to analyze shopping trends and identify valuable customers with a special focus on its Nike+ members. “The acquisition of Zodiac demonstrates our commitment to further accelerating Nike’s digital transformation and enhancing our consumer data and analytics capabilities to help us serve consumers globally,” said Adam Sussman, vice president and chief digital officer of Nike.
CEO talks about the recent management shakeup
Mark Parker also briefly talked about the management shakeup that happened at Nike last week. “We became aware of some behavioral issues that are inconsistent with Nike’s values of inclusivity, respect, and empowerment,” said Parker during the earnings call.
Nike brand president Trevor Edwards announced his resignation on March 18. Though Nike did not provide any reasons for his exit, the Wall Street Journal reported that Nike had circulated an internal memo announcing Edwards’s departure. The memo also talked about recent complaints in regards to inappropriate workplace behavior. A day later, the company’s vice president also parted ways with the company.
ETF investors seeking to add exposure to NKE can consider the SPDR Consumer Discretionary Select Sector ETF (XLY), which invests 3% of its portfolio in NKE.