After a down day, Nike (NYSE:NKE) is up 2.5% after hours following fiscal Q3 earnings where it took a loss due to a large tax expense it took after new legislation, but saw revenues grow with worldwide gains.
Overall revenues rose 6.6%; Revenues for Nike brand rose 4% in constant currency to $8.5B, driven by Greater China, EMEA and APLA, including double-digit growth in Nike Direct and growth in Sportswear and Nike Basketball.
As for Converse, revenues fell 8% in constant currency to $483M, dragged by North American declines that more than offset gains in international and digital.
A loss of $0.57/share saw an impact of $1.25/share due to a $2B tax expense it took after new legislation passed. The company noted an effective tax rate of 179.5%.
At Feb. 28, inventories were $5.4B (up 9% Y/Y due to stronger global demand and changes in exchange rates).
Cash, equivalents and short-term investments were $4.8B, down $1.4% Y/Y on buybacks, dividends and infrastructure investments.
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