Shares of Nike dropped 1.22% on Thursday, closing at $61.68. The stock has lost 2.48% year-to-date.
The company reported latest quarterly results on March 22. Revenues for for its fiscal 2016 third quarter ended February 29 rose 8% to $8 billion, up 14% on a currency neutral basis.
Profit increased 20% to $950 million, driven by strong revenue growth and a lower effective tax rate. EPS rose 22% to $0.55, reflecting a 2% decline in the weighted average diluted common shares outstanding.
Inventories were $4.6 billion, up 8% from last year driven by a 4% boost in NIKE Brand wholesale unit inventories, growth in the company’s DTC business and increases in average product cost per unit, partially offset by changes in the value of inventories due to foreign currency exchange rates.
During the third quarter, Nike repurchased a total of 24.3 million shares for about $1.5 billion. The company concluded its previous four-year, $8 billion share repurchase program approved by the board in September 2012. Under the program, Nike purchased a total of 197.1 million shares at an average price of about $40.58.
“In the third quarter, NIKE delivered robust and balanced growth across our expansive, powerful portfolio,” Nike President CEO Mark Parker said in a statement.
“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.”