Experts React To Nike's Q3: Were Expectations Too High?

Nike Inc NKE reported fiscal third-quarter results Thursday that sent the stock lower as investors showed signs of concerns with poor North American sales. 

Poser: Expectations Were High

Nike was up against high expectations in the recent quarter, and when investors take a closer look at the report, they may come to realize "how good the business is," Susquehanna's Sam Poser told CNBC shortly after the earnings release Thursday afternoon.

For example, expectations for North American sales growth were above the 8 percent reported due to "the analysts who were pressing the number high."

Widlitz: Nike Winning Market Share

Nike's North American performance in the quarter was "a little disappointing," with the stock trading close to all-time highs last week, Stacey Widlitz of SW Retail Advisors told CNBC Friday morning.

Yet the company showed double-digit growth in Europe at a time when rival Adidas slid 6 percent, Widlitz said. Coupled with a 24-percent increase in China, Nike is winning market share across the world, she said. 

Nike's guidance for revenue to rise by a mid-single digit had the Street saying "eh, we were looking for a little bit more upside at an all-time high," Widlitz said. 

McClintock: Nike A Victim Of Its Own Success

Nike may be a "victim of its own success" after guiding to high-single-digit revenue growth for fiscal 2020, Barclays' Matthew McClintock told CNBC Friday morning. The apparel company's outlook is consistent with its already announced long-term plan, but the company is up against "elevated expectations beyond [the] consensus," he said. 

"If you can name another consumer company that is growing at those levels — it is really difficult," he said,  adding that "not only did [Nike] hit their numbers, their numbers are multiples of what everyone else in the retail industry is growing today."

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