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.
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”, MarketRebellion.com’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.
The post Nike Q3 results: ‘supply chain not as bad as expected’ appeared first on Invezz.
Source: https://invezz.com/news/2022/03/21/nike-q3-results-supply-chain-not-as-bad-as-expected/