Nike Inc. NKE, +15.18% shares rose more than 5% in the extended session Tuesday after the retailer reported fiscal third-quarter results above Wall Street expectations and said its digital sales rose 36%. Nike said it earned $847 million, or 53 cents a share, in the quarter, compared with $1.1 billion, or 68 cents a share, in the year-ago quarter. Revenue rose 5% to $10.1 billion, thanks to a 13% growth in Nike Direct, with digital growth of 36% and strong growth across Nike’s several markets, including North America, which offset the impact of COVID-19 in Nike’s business in China. Analysts polled by FactSet had expected Nike to report EPS of 51 cents on sales of $9.8 billion. “In an extraordinarily dynamic time, Nike’s strong results are testament to our deep consumer connections, compelling product innovation and agile teams around the world,” Chief Executive John Donahoe said in a statement. “As we start to see recovery in China, no one is better equipped than Nike to navigate the current climate,” he said. Nike said its inventories were $5.8 billion, up 7% compared with the prior-year period, “reflecting anticipated strong demand across all geographies as well as higher inventories in Greater China due to COVID-19.” The company had cash and short-term investments around $3.2 billion. Shares of Nike ended the regular trading day up 15%.
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