NYSE$NKE

NIKE · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Nike's Q3 2020 results were released, showcasing revenue growth despite challenges in Greater China due to COVID-19.

NIKE reported a 5% increase in revenue to $10.1 billion, driven by digital sales growth and strong performance in EMEA, APLA, and North America, although Greater China revenues were impacted by COVID-19. Diluted earnings per share were $0.53, which included a $0.25 non-recurring charge.

  • Revenues increased by 5% to $10.1 billion, or 7% on a currency-neutral basis.
  • Digital sales rose 36% compared to the previous year.
  • Diluted earnings per share were $0.53, which included a $0.25 non-recurring charge.
  • Greater China revenues decreased by 4% due to COVID-19 impacts.

Headline financials

Total Revenue

$10.1B

Previous: $9.61B+5.1%
EPS (adj)

$0.78

Previous: $0.68+14.7%
Gross Margin

44.3%

Previous: 45.1%-1.8%
Demand Creation Expense

$870M

Previous: $865M+0.6%
Operating Overhead Expense

$2.41B

Previous: $2.23B+8.4%
Effective Tax Rate

3.9%

Previous: 14.7%-73.5%
Capital Expenditures

-$797M

Previous: -$846M+5.8%
Free Cash Flow

$50M

Previous: $255M-80.4%
Net Income

$847M

Previous: $1.1B-23.1%
Operating Income

$1.19B

Previous: $1.25B-4.6%
Gross Profit

$4.47B

Previous: $4.34B+3.1%
Cash & Equivalents

$2.86B

Previous: $3.7B-22.5%
Total Assets

$26.2B

Previous: $22.9B+14.4%
Stock-Based Comp

$113M

Previous: $93M+21.5%

Revenue & EPS history

Nike · Revenue · Quarterly

$10.1B

Q3 2020+5.1%vs Q3 2019
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Nike · $10.1B total across 2 segments · Q3 2020

  • NIKE Brand
    $9.62B+5.1%
  • Converse
    $506M+9.3%

Forward guidance

NIKE is executing against an operational playbook that will expedite NIKE’s return to profitable, capital efficient growth leveraging our strong financial position, the strongest partnerships across the value chain in our industry, and our leading digital capabilities.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 18 quarterly earnings reports · overlaid with Q3 2020

Historical avgQ3 2020

+0.5%

Avg return

Earnings day

+0.0%

Avg return

5 days after

+1.3%

Avg return

30 days after

56%

40 / 72 earnings

Positive

+25.8%

Q3 2020

Best reaction

-19.9%

Q4 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2026
Q3 2026-6.0%-6.4%
Q2 2026-5.3%-8.6%-1.9%
Q1 2026+4.9%+2.1%-7.4%
Q4 2025+0.2%+2.8%+6.9%
Q3 2025-5.5%-8.5%-22.4%
Q2 2025+0.1%-0.1%-7.9%
Q1 2025-6.0%-7.0%-12.7%
Q4 2024-19.9%-19.2%-22.9%
Q3 2024-6.4%-7.7%-5.7%
Q2 2024-11.0%-11.0%-16.2%
Q1 2024+6.9%+6.3%+9.6%
Q4 2023-2.4%-3.5%-3.9%
Q3 2023-1.4%-0.4%+2.7%
Q2 2023+12.4%+12.8%+20.8%
Q1 2023-15.8%-10.2%-4.9%
Q4 2022-9.0%-10.4%-4.5%
Q3 2022+1.4%+1.9%+3.5%
Q2 2022+3.3%+2.7%-10.1%
Q1 2022-5.0%-7.7%+3.8%
Q4 2021+16.0%+17.2%+25.0%
Q3 2021-5.1%-5.3%-7.3%
Q2 2021+2.5%+0.9%+0.2%
Q1 2021+12.1%+9.6%+14.7%
Q4 2020-6.4%-2.0%-1.6%
Q3 2020+25.8%+32.5%+39.1%
Q2 2020-0.6%-0.4%+3.9%
Q1 2020+3.6%+5.3%+4.3%
Q4 2019+1.7%+2.9%+6.0%
Q3 2019-5.2%-3.8%+2.9%
Q2 2019+4.9%-1.3%+16.6%
Q1 2019-0.7%+0.5%-13.3%
Q4 2018+11.7%+6.9%+7.8%
Q3 2018-2.6%-0.3%-0.4%
Q2 2018-0.5%+0.1%+5.7%
Q1 2018-1.1%-2.6%+6.7%
Q4 2017+10.6%+9.9%+10.0%
Q3 2017-8.1%-4.0%-3.9%
Q2 2017+2.9%+2.1%+4.1%
Q1 2017-2.1%-3.2%-4.6%
Q4 2016+6.2%+7.2%+6.9%
Q3 2016-3.5%
Q2 2016-0.8%
Q1 2016+8.3%
Q4 2015+3.3%
Q3 2015+4.6%
Q2 2015+0.4%
Q1 2015+10.7%
Q4 2014+1.6%
Q3 2014-5.0%
Q2 2014-1.6%
Q1 2014+6.8%
Q4 2013+2.9%
Q3 2013+8.6%
Q2 2013+7.5%
Q1 2013-0.6%
Q4 2012-10.5%
Q3 2012-2.7%
Q2 2012+3.2%
Q1 2012+3.4%
Q2 2011-1.0%
Q4 2011-1.0%
Q3 2011+0.2%
Q1 2011-0.4%
Q4 2010+1.5%
Q3 2010+0.1%
Q3 2009+0.1%
Q2 2009+0.4%
Q2 2010+0.4%
Q1 2010+0.3%
Q4 2009+0.3%
Q4 2008+0.3%
Q1 2009+0.3%

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