Nike Shares Fall Despite Q3 Earnings Beat

Nike Inc NKE reported a third-quarter earnings beat Thursday afternoon.

The sportswear giant reported earnings of 68 cents per share, beating consensus estimates by 5 cents. Sales came in at $9.6 billion, topping estimates by $50 million.

"In Q3, our team once again drove strong, healthy growth across Nike's complete portfolio," said Chairman and CEO Mark Parker. "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."

"The Consumer Direct Offense is delivering broad-based growth across all four of our geographies, led by continued momentum in China," said EVP and CFO Andy Campion. "We will continue investing in key capabilities to drive NIKE's digital transformation and fuel strong profitable growth into next fiscal year and beyond."

Highlights

• Revenues increased 7 percent
• Nike Brand revenues up 12 percent
• Converse revenues down 2 percent
• Inventories up 1 percent to $5.4 billion
• 9.8 million shares repurchased for $754 million

Nike's stock closed higher by 1.5 percent at $88.01 per share. In the after-hours session, shares were down 3.6 percent at $84.82 at time of publication.

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