Nike misses on earnings, but beats on revenues as customers buy more sneakers and gear

  • Nike’s fiscal fourth-quarter earnings slightly miss analysts’ estimates.
  • Revenues beat.
  • Nike’s margins were hurt partially because of its direct-to-consumer investments.

Nike sold more sneakers and gear during the fiscal fourth quarter than Wall Street expected, helping to boost revenues by 4% to just over $10 billion.

Its earnings released Thursday, however, missed analysts’ expectations by a few pennies a share, and the stock initially fell by more than 4% in after-hours trading before rebounding. Shares were trading down 1% by 4:30 p.m. ET.

Nike earned 62 cents a share on an adjusted basis during the three months ended May 31, short of Wall Street’s forecast for 66 cents a share, according to average analysts’ estimates compiled by Refinitiv.

Revenues for the Nike brand, which excludes Converse merchandise, jumped 10% from the same quarter last year to $9.7 billion. Converse sales were about flat at $491 million.

Total sales in North America, excluding fluctuations in currency rates, were up 8%. Sales in the China region surged 22%.



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