Shares of Nike Inc. jumped in after-hours trading as the company's digital sales offset the fiscal third-quarter 2020 revenue drop in China amid the COVID-19 outbreak.

The company's retail volume in China plummeted after Nike closed more than 5,000 stores in the region and reduced hours at others, but Nike CEO John Donahoe said online sales made up for the losses.

"We acted quickly and decisively, leveraging our diverse sourcing base and digital capabilities to manage the business with flexibility and shifting our inventory to serve consumer digital demand," he said on Nike's third-quarter earnings call.

As cities across China shut down to prevent further spread of the virus, Donahoe said Nike used its digital app ecosystem and expert trainer network to encourage consumers across China to stay active while at home.

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This resulted in an 80% jump in weekly active users for Nike activity apps and a 30% increase in the company's digital business in China.

Nike CFO Andrew Campion said the company has progressed through the "recovery phase" and has entered the "normalization phase."

"Today, our digital commerce growth continues to accelerate, with triple-digit growth in demand just this last week," Campion said on the call. "Most of our stores and our partner stores are open, retail traffic is significantly accelerating week over week and we're beginning to see a decline from the peak inventory levels we experienced."

The CFO said the company is confident that the company's greater China region is on track to return to growth in fiscal 2021. Greater China saw a 5% drop in revenue on a year-over-year basis.

However, Nike did not provide guidance for the fourth quarter of 2020 due to the uncertainty of the continuing spread of the virus in other countries.

"For fiscal year '21, we have been planning performance in line with our long-term financial model," Campion said. "The year-over-year growth rate base comparisons will no longer be meaningful."