Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.

Nike share price down 3% after Q3 earnings revenue beat

The shoe company's stock tumbles after weaker-than-expected sales.

Nike share price fell 3% in US afterhours trading after the sneaker company released its third quarter( Q3) earnings report. Nike’s revenue fell slightly below Wall Street expectations.

Nike earnings: key figures

Earnings per share $0.68
Revenue $9.61 billion
Net income $1.1 billion
North America sales $3.81 billion

Nike share price down 3% as Q3 earnings revenue beats estimates

Nike’s earnings per share was $0.68, higher than the expected $0.65. Nike’s Q3 revenue was $9.6 billion, slightly higher than financial experts’ and the corporation's own estimates. Chief executive officer, (CEO), Mark Parker, said Nike’s profits grew because of the company’s investment in digital sales.

‘In Q3, our team once again drove strong, healthy growth across Nike’s complete portfolio. 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,’ said Parker.

Though Nike’s earnings and revenue exceeded expectations, North American sales dropped below Wall Street estimates. The shoe company’s sales on the continent were $3.81 billion, less than the $3.85 billion predicted by financial analysts.

While Nike’s revenue in North America was worse-than-expected, Nike’s profits in China improved, with sales at $1.59 billion, a 19% increase. The shoe company’s chief financial officer, Andy Campion, touted the corporation’s growth in the Asian nation.

‘The Consumer Direct Offense is delivering broad-based growth across all four of our geographies, led by continued momentum in China,’ said Campion.

How do Nike’s Q3 results compare to other sneaker companies?

Nike’s Q3 results are positive, but not better than competitor Under Armour’s Q4 results. Under Armour's sales and share price improved in its last earnings report, but Nike's did not.

Did exploding shoes hurt Nike’s profits in North America?

Nike had high sales in North America, but not enough to please Wall Street. Nike’s profits were better-than-expected, but overshadowed by worse-than-expected North American sales. Nike’s revenue could possibly have been affected by a scandal last month. A new sneaker fell apart on Duke University player Zion Williamson’s foot and briefly injured the player in a recent game. Kian Salehizadeh, analyst at investment firm Blockforce Capital, said the incident could have impacted sales.

‘While it’s not very clear what caused the domestic weakness, it’s possible that the news of what happened with the Duke University player’s [Zion Williamson] shoe had a short-term negative impact,’ said Salehizadeh.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Act on share opportunities today

Go long or short on thousands of international stocks with spread bets and CFDs.

  • Get full exposure for a comparatively small deposit
  • Trade on spreads from just 0.1%
  • Get greater order book visibility with direct market access

See opportunity on a stock?

Try a risk-free trade in your demo account, and see whether you’re on to something.

  • Log in to your demo
  • Take your position
  • See whether your hunch pays off

See opportunity on a stock?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Trade a huge range of popular stocks
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform

See opportunity on a stock?

Don’t miss your chance. Log in to take advantage while conditions prevail.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Sunday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of spread betting and CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.