Footwear giant Nike, Inc. posted positive financial results for its fiscal 2016 third quarter ended February 29, 2016. Diluted earnings per share grew 22 percent to $0.55, primarily due to significant revenue growth for the Nike brand, a lower effective tax rate and a lower average share count.
In addition, revenue for the company rose 8 percent to $8 billion, although its Converse brand’s revenue was down 5 percent. Gross margin was flat at 45.9 percent, while net income increased 20 percent to $950 million.
“In the third quarter, Nike delivered robust and balanced growth across our expansive, powerful portfolio,” said Mark Parker, the company’s president and CEO. “We grow by serving the athlete personally every day and, as we unveiled last week, through breakthrough innovation that gives us a foundation for growth for years to come. Combined with our strategic investments, world-class execution and financial discipline, Nike consistently delivers value to our shareholders.”
Before earnings were reported, Nike – which is part of the Dow Jones Industrial Average – closed on Tuesday at 64.93.