Nike shares fall as weaker sales in North America lead to revenue shortfall
Nike shares dropped in extended trading Thursday after the sneaker giant reported quarterly revenue that missed analysts' expectations, due to softening demand in North America.
Its stock was recently down around 2.5%.
Here's how Nike did during its fiscal first quarter compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:
- Earnings per share: $1.16 vs. $1.11 expected
- Revenue: $12.25 billion vs. $12.46 billion expected
Net income for the three-month period ended Aug. 31 grew to $1.87 billion, or $1.16 per share, compared with $1.52 billion, or 95 cents per share, a year earlier. That topped analysts' expectations for $1.11 a share.
Sales climbed to $12.25 billion from $10.59 billion a year earlier. That was short of expectations for $12.46 billion.
Sales in Greater China were up 11%, the smallest increase of its geographies. The region had been one of Nike's biggest revenue drivers in quarters past.
Revenue in North America rose 15% to $4.88 billion. That was short of the $5.05 billion that analysts polled by FactSet were looking for.
Nike shares are up about 13% year to date, as of Thursday's market close, but down about 9% from an all-time high reached in early August. The company has a market cap of $252.6 billion.
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Find the full press release from Nike here.
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