Nike Inc (NKE) Crushes Analysts’ Q3 Expectation, Shares Pop

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Nike Inc (NYSE:NKE) had a strong quarter that reaffirmed the company’s resurgence in the athletic apparel industry, keeping pace with competitors.

Nike Inc (NKE)Analysts were projecting the company’s adjusted earnings to reduce by 23.5% compared to the year-ago period to 52 cents per share, according to Zacks Investment Research. The company topped this outlook easily, bringing in adjusted earnings of 68 cents per share, excluding tax-related charges.

Nike also impressed with higher-revenue-than-expected as the apparel retailer raked in $8.98 billion in sales. The Wall Street consensus estimate was calling for revenue to gain 4.9% compared to the year-ago period to reach $8.84 billion, according to data compiled by Zack.

Recent reports suggest that Trump has plans on increasing international trade tariffs on Chinese imports, which could affect Nike’s business. The tariffs are mostly geared towards tech imports on order to protect U.S. advancements in technology and reducing intellectual property theft, but the apparel industry may also be affected by these tariffs

Nike has also come under fire due to an informal survey that circulated throughout the company in which female employees discussed multiple instances of inappropriate behavior from their male counterparts. CEO Mark Parker is likely to address this issue moving forward.

The news led to the resignation of executive and Nike Brand President Trevor Edwards, as well as the exit of executive Jayme Martin, who was at the forefront of these complaints.

NKE stock gained 4.9% after the bell after slipping 2.9% during regular trading hours Thursday.


Article printed from InvestorPlace Media, https://investorplace.com/2018/03/nike-inc-nke/.

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