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Nike’s EPS Tops Street, Sales Hit by Stronger Dollar

Nike Inc., reported a mixed finish to Q3, ended Feb. 28, 2015, missing analysts sales forecast but surpassing EPS estimates. The Beaverton, Oregon-based company said its sales, which rose 7 percent this quarter, would have improved by 13 percent were it not for the currency translation impact.

Net Income: Profits increased 16 percent to $791 million compared to the same year-ago quarter’s $682 million.

EPS: Earnings per diluted share were 89 cents—up 19 percent from the 75 cents reported in the same year-ago quarter.

Net Revenue: Sales rose 7 percent—or 13 percent excluding currency changes—to $7.5 billion compared to $7 billion in Q3 of 2014.

Hit, Miss or Beat: Nike’s results this quarter were mixed. Net revenue was a miss on Wall Street’s estimate. Analysts polled by Yahoo Finance forecasted revenue of $7.62 billion for the quarter and Nike landed slightly below expectations with $7.5 billion. EPS, however, beat Street’s forecasts of 72 cents landing at 89 cents.

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Executive Insights: “Our strong third quarter results show that our growth strategies are working, even under challenging macroeconomic conditions,” said Mark Parker, Nike’s CEO, in a statement. “Nike has the ability to deliver consistent shareholder value due to the strength of our brand, our relentless commitment to innovation and our powerful portfolio that allows us to invest in the opportunities with the highest potential for growth as well as manage risk.”

The company will host a conference call beginning at approximately 2:00 p.m. PT on March 19, 2015, to review third quarter results.

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