A tax hike caused Nike to take a $921 million L in Q3—its first net loss since 1998—but things are back in order for the fourth quarter.
Double-digit growth in international markets and Nike's flourishing consumer-direct initiative saw revenues jump 13 percent to $9.8 billion, up from $9.0 billion in Q3. Another key contributor was a return to growth in North America, where revenues increased 3 percent after a Q3 drop of 8 percent. The company also announced Q4 net income of $1.1 billion thanks in large part to adjustments in the Tax Act as well as global revenue growth.
CEO Mark Parker identified key areas responsible for Nike's success, first touting the brand's latest sneaker innovations, namely React and new Air Maxes across multiple styles and categories. Parker also said the brand's digital offensive has proved to be transformative, while a more focused strategy has allowed for a more complete portfolio.
Jordan Brand had another positive quarter, with Parker noting the Jumpman was up nearly 50 percent in China along with tripling the size of its women's division.
While the Nike and Jordan brands were strong, Converse revenues were down 14 percent in Q4 to $512 after growth in Asia yet a decline in other key territories including North America.
For fiscal 2018 as a whole, Nike's revenues increased to $36.4 billion, up 6 percent from 2017.
