Nike’s quarterly earnings beat analysts’ estimates but its shares dipped in extended trading Thursday amid lower-than-expected sales in North America.
The world’s largest sportswear maker earned 68 cents per share in the third quarter compared to estimates of 65 cents. Revenue just about met expectations, rising 7% to $9.61 billion with double-digit growth across shoes and apparel.
For the first time, Nike’s online business saw $1 billion in quarterly sales, surging 36% as the company continued to invest in online initiatives like its mobile app and customization options for customers.
But in North America, sales were up 7% to $3.81 billion, falling short of estimates of $3.87 billion. Nike shares dropped 4.5% to $84.01 in the after-hours session Thursday.
According to Footwear News, investors, “who had been upbeat on the brand amid market watchers’ reports that the firm was regaining some market share in North America as Adidas slowed down from a period of blockbuster growth, were likely underwhelmed” by the third-quarter gain.
Revenues at the Nike brand advanced 12% to $9.1 billion, driven by growth across wholesale and Nike direct-to-consumer categories including Sportswear and Jordan, while sales at the Converse shoe brand were down 2% to $463 million amid declines in the U.S. and Europe.
“Hoping to keep building momentum for its brand, Nike’s focus has shifted from its wholesale partners to now selling as much as it can directly to consumers, through its own stores and website,” CNBC reported.
The company sees new growth coming from apparel — for both men and women — and women’s products. Women’s business represents less than a quarter of Nike’s total revenue, Nike executives said in December, but sales to women have outpaced those to men.
The $110 Air Max Dia sneakers are designed specifically to fit women’s feet and the company also has introduced a plus-sized bra line to capitalize on growing consumer demand.
“We’ve got great momentum in the women’s business but we’re chasing something much bigger,” CFO Andy Campion told analysts in an earnings call.