Nike Falls Despite Q1 Earnings, Sales Beat

Nike Inc NKE shares fell as much as 4 percent following the company's first-quarter earnings release.

What Happened

The world’s largest sportswear company delivered Q1 earnings of 67 cents per share, beating estimates by 5 cents. Sales came in at $9.948 billion, beating estimates by $18 million.

"Nike's Consumer Direct Offense ... is driving strong momentum and balanced growth across our entire business," said Mark Parker, Chairman, President and CEO, Nike. "Our expanded digital capabilities are accelerating our complete portfolio and creating value across all dimensions as we connect with and serve consumers."

Revenues for the Nike Brand were up 10 percent on a currency-neutral basis drive by double-digit growth internationally and in Nike Direct, as well as strong momentum in North America.

"We are delivering stronger global growth and profitability than we anticipated entering this fiscal year," said Andy Campion, Executive Vice President and Chief Financial Office. "While foreign exchange volatility has increased, our underlying currency-neutral momentum continues to build as we transform how NIKE operates, drives growth and creates value for our shareholders."

What's Next

Despite strong results, a near-term pullback was anticipated by some analysts.

"The stock is getting a little bit overbought on a near-term basis so you might see a little bit of a pullback," Matt Maley, equity strategist at Miller Tabak, told CNBC on Tuesday.

"Longer term, the stock looks quite good," he said. "The stock's just been playing catch-up here and on a longer-term basis the series of higher highs and higher lows it's been making bodes well for the stock as we move forward."

The company will hold its conference call at 5 p.m. ET.

In the after-hours session, Nike was trading down about 2.7 percent to $82.47 at time of publication. Shares are up more than 30 percent year-to-date.

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Photo credit: Emily Elconin