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Nike Beats Quarterly Revenue Estimates as Digital Growth Offsets China Sales Drop

Nike, Inc (NKE) reported better-than-expected quarterly revenue as digital demand offset a sales decline in China resulting from the coronavirus shutdowns.

Revenues for the third quarter ended Feb. 29, rose 5% to $10.1 billion as overall digital growth increased 36% during the same period, the company said late on Tuesday. Greater China revenues dropped for the first time in 22 consecutive quarters of double-digit growth, declining 4% during the period. Diluted earnings per share slid 22 percent to $0.53.

The analyst community remains bullish on Nike’s prospects. Sixteen Buys and three Holds over the last three months coalesce into a Strong Buy consensus rating. The average price target comes in at $97.18 and implies potential gains of 34% in the next 12 months. (See Nike’s stock analysis on TipRanks)

During the third quarter, Nike repurchased 9.6 million shares for about $957 million as part of its four-year, $15 billion program approved by the Board of Directors in June 2018. As of February 29, 2020, a total of 43.3 million shares had been repurchased under this program for about $3.9 billion.

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Sharon Wrobel
Sharon Wrobel is a journalist and writer with two decades of experience covering financial news in the U.S., Europe and the Middle East. Her work has appeared in global publications including The Financial Times, Bloomberg and The Jerusalem Post.

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