Nike’s third-quarter profits exceeded forecasts, but the price fluctuated in after-hours trade as gross margins shrank. Nike (NKE) reported earnings of 79 cents per share, exceeding projections of 56 cents per share.
Sales of $12.4 billion were up 14% from the same period last year, exceeding projections of $11.5 billion. Revenue increased in all of the company’s major sectors, including direct-to-consumer and wholesale.
Nike Beats Analysts’ Predictions
According to Refinitiv’s average estimates, the retailer’s revenue for the third fiscal quarter of 2023 was $12.4 billion, exceeding analysts’ expectations of $11.47 billion. The company also posted earnings per share (EPS) of $0.79, compared to the $0.55 projected by analysts.
Furthermore, the corporation reported a 14% increase in revenue over the previous year. Nike has been working for several years to increase its ability to sell directly to consumers rather than through other shops. This includes expanding internet sales, developing experience storefronts, and strengthening its reward program.
According to the company’s quarterly report, Nike Direct sales increased by 17% to $5.3 billion during the Christmas quarter. Nike Brand digital sales increased by 20%.
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What Does This Mean For Investors?
Nike announced its fiscal third-quarter earnings after the market closed on March 21. The following day, shares fell nearly 5% and closed the trading session at $119.50 per share.
Here’s how much money you’d have if you’d invested $1,000 in the company one, five, or ten years ago on March 22.
- According to CNBC’s calculations, a $1,000 investment in Nike a year ago would be worth around $908 as of March 22.
- According to CNBC’s calculations, if you bought $1,000 in Nike five years ago, your investment would have nearly quadrupled to $1,937 as of March 22.
- According to CNBC’s calculations, a $1,000 investment in Nike a decade ago would have more than doubled to $4,293 as of March 22.
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