Nike Tops Profit Forecasts
March 21 2017 - 6:03PM
Dow Jones News
By Ezequiel Minaya
Nike Inc. posted quarterly profit that topped Wall Street
expectations, propelled by its crucial North America segment.
The world's largest sportswear maker saw domestic sales, which
make up nearly half of the top line, grow 3% in its fiscal third
quarter, better than the 2.3% expansion some analysts had
expected.
Still, Nike has faced increasing competition in the U.S. from
rivals Under Armour Inc. and Adidas AG as well as so-called
athleisure sellers, and investors may still consider the latest
domestic sales growth lackluster.
Shares, which have fallen 9.8% this year, declined 0.7% after
hours to $57.58.
Nike reported Tuesday a profit of $1.14 billion, or 68 cents a
share, up from $950 million, or 55 cents a share, a year
earlier.
Analysts polled by Thomson Reuters had expected per-share profit
of 53 cents. The company has beaten quarterly earnings estimates
all but once over the past five years.
Revenue increased 5% to $8.43 billion, falling short of the
$8.47 billion analysts expected. Excluding currency fluctuations,
revenue rose 7%.
The top line has fallen short of consensus views in four of the
past six quarters, with the slower growth linked to the North
American market.
Write to Ezequiel Minaya at ezequiel.minaya@wsj.com
(END) Dow Jones Newswires
March 21, 2017 17:48 ET (21:48 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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