Nike (NKE) has beat analyst expectations in Q3 but NKE stock is losing steam after the company’s projected outlook appears to be slowing.
The decline is due to the dollar’s resurgence affecting Nike’s performance abroad.
NKE got 45% of its sales profit from overseas last year.
Nike stock fell 2.9 percent from yesterday’s New York close to the equivalent of $77 at 9:35 a.m. in German trading. German competitor Adidas AG, which said this month that the weakness of currencies such as the Russian ruble will cause 2014 profit to miss estimates, fell 1 percent to 76.82 euros in Frankfurt.
Nike’s forecast came after the Beaverton, Oregon-based company posted earnings of 76 cents a share in the three months through Feb. 28. The average of 26 analysts’estimates compiled by Bloomberg was 72 cents.
“It’s foreign currency, as well as they’re going to continue to invest behind the brands,” Brian Yarbrough, an analyst with Edward Jones & Co. in St. Louis, said in an interview.
NKE is up 45% from last and has benefited from a newer trend that sees more athletic clothing being worn for everyday use.
NKE is down 3% in early morning trading.