Nike reported a loss in its third quarter due to a US$2 billion ($2.7b) tax expense related to recent changes in the U.S. tax law. But its results beat expectations and its shares jumped in after-hours trading.
The company also said Thursday that it saw higher demand for its swoosh-branded sneakers and apparel in China. Demand was also strong in other parts of Asia, as well as Europe, Africa and the Middle East.
Altogether, revenue rose nearly 7 per cent to US$8.98b, topping Wall Street expectations of US$8.83b, according to Zacks Investment Research .
Nike reported a third-quarter loss of US$921 million, or 57 cents per share. Most of that loss was due to the tax expense, the Beaverton, Oregon-based company said.
Earnings, adjusted for pretax expenses, were 68 cents per share. That beat the 52 cents per share Wall Street analysts expected, according to Zacks.
Shares of Nike Inc., which closed at US$64.42 on Thursday, jumped nearly 7 per cent in extended trading Thursday.