Nike Q3 results: ‘supply chain not as bad as expected’
- Nike reports better-than-expected results for its fiscal third quarter.
- Pete Najarian discussed the earnings report on CNBC's "Closing Bell".
- Nike shares are up more than 6.0% in extended trading on Monday.
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Nike Inc shares (NYSE: NKE) jumped more than 6.0% in extended trading on Monday after the footwear company reported market-beating results for its fiscal third quarter.
Key takeaways from Nike Q3 results
- Earnings printed at $1.4 billion versus the year-ago of
- EPS of 87 cents were down from 90 cents in the same quarter last year.
- Gross margin was up 100 bps to 46.6%, as per the earnings press release.
- Revenue jumped 5.0% year-over-year to $10.87 billion in Q3.
- FactSet consensus was for 71 cents of EPS on $10.6 billion in sales.
Last week, Nuveen CIO Saira Malik said Nike was an attractive buy at current valuation.
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Pete Najarian’s remarks on Nike earnings report
Sales in China were down 5.0%, offset by a 17% growth in Nike Direct sales. Nike-owned stores was up 14%, while digital sales grew 22%. On CNBC’s “Closing Bell”, MarketRebellion.com’s Pete Najarian said:
DTC up 15% is a huge number because that is where the margins are for Nike. That supply chain, not as bad as expected. China down 5.0% is not the worst thing in the world. Digital sales also showed the power of the brand. So, I like what we’re seeing here.
Last week, Stifel slashed its price target on Nike to $160 a share; still a 15% upside from here.
