Nike Q3 results: ‘supply chain not as bad as expected’

on Mar 21, 2022
  • 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.

Follow Invezz on Telegram, Twitter, and Google News for instant updates >

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.

Are you looking for fast-news, hot-tips and market analysis? Sign-up for the Invezz newsletter, today.

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”,’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.