uploads///shoes _

Nike’s Fiscal 2019 Q3 North American Sales Disappoint


Mar. 22 2019, Updated 9:09 a.m. ET

Fiscal 2019’s third quarter

Nike (NKE) stock fell 4.7% after market hours yesterday in reaction to the company’s results for fiscal 2019’s third quarter.[1.ended February 28] Nike’s earnings exceeded analysts’ expectation, and its revenue aligned with their estimate. However, its North American revenue fell short of their forecast, and Nike stock was down 4.1% as of 7:16 am Eastern Time today.

In fiscal 2019’s third quarter, Nike’s sales grew 7.0% YoY (year-over-year) to $9.61 billion, driven by double-digit growth in the footwear and apparel categories. On a currency-neutral basis, Nike’s revenue grew 11%. Under its Consumer Direct Offense strategy, Nike is focusing on improving its top line by focusing on innovation, digital sales, and supply chain efficiencies. New products launched in the fiscal third quarter included the Air Max 720 and the Adapt BB. Its digital revenue continued to impress, growing 36% globally on a currency-neutral basis.

Article continues below advertisement

Regional revenue

In fiscal 2019’s third quarter, Nike saw double-digit currency-neutral growth in international markets and high-single-digit growth in North America. Nike’s North American revenue grew 6.7% on a reported basis to $3.81 billion, missing analysts’ estimate of $3.87 billion. In comparison, Nike’s North American revenue grew 8.5% in the second quarter. China continued to drive Nike’s international performance, with its Chinese revenue growing 24% on a currency-neutral basis. Nike’s digital sales grew more than 60%.

Meanwhile, Under Armour’s (UAA) revenue grew 1.5% to $1.39 billion in last year’s fourth quarter. Under Armour’s North American sales stayed weak and fell 5.8% to ~$965 million in the fourth quarter. Next, we’ll look at Nike’s earnings in fiscal 2019’s third quarter.


More From Market Realist

    • CONNECT with Market Realist
    • Link to Facebook
    • Link to Twitter
    • Link to Instagram
    • Link to Email Subscribe
    Market Realist Logo

    © Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.