Nike slides after sales miss the mark (NKE)
- Nike shares slipped in after-hours trading on Thursday after the company's third-quarter revenue fell short of expectations.
- North American revenue also fell slightly short of Wall Street's forecasts.
- Shares have been on a tear in recent months, up 19% so far in 2019.
- Watch Nike trade in live.
Nike shares fell nearly 4% in extended trading on Thursday after the company reported third-quarter revenue that fell short of analysts' expectations.
Here's what the sneaker giant for the three months ending February 28, compared with what analysts surveyed by Bloomberg expected.
- Adjusted earnings per share (EPS): $0.68 versus $0.65.
- Revenue: $9.6 billion versus $9.65 billion.
- North American revenue: $3.81 billion versus $3.85 billion.
Even as its sales just missed estimates, the Beaverton, Oregon-based company touted its digital strategy driving revenue growth for a second quarter.
"Our business momentum is being accelerated by our ability to scale innovation at a faster pace and expand new digital consumer experiences around the world," said Mark Parker, Nike's CEO, in a release.
Meanwhile, Nike said it repurchased 9.8 million shares in the third-quarter for a total of $754 million.
Nike shares took a hit last month after Zion Williamson, the star college-basketball player, was injured when his sneakers malfunctioned. But the episode did little to dent the stock's longer-term performance, with shares still up 19% this year.
Sam Poser, an analyst at Susquehanna who is generally quite bullish in his footwear coverage, had recommended buying Nike ahead of its report. He said solid results from Foot Locker earlier this month indicated Nike sales had gained momentum.
"Footwear increasing market share across categories, distribution channels, geographies and genders," Poser told clients last week. "The momentum of apparel sales growth continues as well; we think women's apparel will continue to be the greatest opportunity for growth."
The third-quarter results come after a particularly strong showing last quarter, reflecting efforts around Nike's digital strategy had paid off.
Wall Street is generally pretty bullish on the company. Analysts surveyed by Bloomberg, carry 25 "buy" ratings, 10 "hold" ratings, and just one "sell."
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