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Nike shares tumble as weaker sales in North America lead to lower revenues


Pedestrians walk past the American multinational sportswear brand, the Nike store and its logo seen in Hong Kong.

Budrul Chukrut | LightRocket | Getty Images

Nike shares fell on Thursday after the sneaker giant reported quarterly earnings lower than analysts’ expectations, due to slowing demand in North America.

Its stock has recently fallen by around 2.5%.

Here’s how Nike fared in its first fiscal quarter compared to what Wall Street expected, based on an analyst survey by Refinitiv:

  • Earnings per share: $ 1.16 vs. $ 1.11 expected
  • Turnover: $ 12.25 billion against $ 12.46 billion expected

Net income for the three-month period ended Aug.31 was $ 1.87 billion, or $ 1.16 per share, from $ 1.52 billion, or 95 cents per share, a year earlier. This exceeded analysts’ expectations for $ 1.11 per share.

Sales climbed to $ 12.25 billion from $ 10.59 billion a year earlier. It was below expectations of $ 12.46 billion.

Sales in Greater China increased 11%, the smallest increase in its geographies. The region had been one of Nike’s main revenue drivers in recent quarters.

Sales in North America increased 15% to $ 4.88 billion. That was below the $ 5.05 billion that analysts polled by FactSet were looking for.

Nike shares are up about 13% year-to-date, as the market closed on Thursday, but down about 9% from an all-time high reached in early August. The company has a market capitalization of $ 252.6 billion.

This story is developing. Please check for updates.

Find Nike’s full press release here.


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