Nike on Tuesday reported quarterly profits that topped the most bullish forecast on Wall Street, with sales that slightly missed expectations.
The company posted adjusted earnings per share of $US0.68 on revenues of $US8.4 billion.
Analysts had expected Nike to report adjusted EPS of $US0.53 and revenues of $US8.47 billion, according to Bloomberg.
Total futures orders — an important measure of demand from retailers — were estimated to grow 3.4% worldwide and decline 1.2% in North America. The company last quarter decided to stop publishing these in every earnings statement, saying it would mention them during the earnings calls as it deems appropriate.
Ahead of the earnings, traders placed a record amount of bets that Nike shares would decline, according to S3 Partners. Short bets against Nike have climbed by $US774 million, or 62% this year, and have crossed the $US2 billion mark for the first time ever. Nike shares have fallen 8% over the past year.
Nike is vulnerable to any trade restrictions or tariffs implemented by President Donald Trump’s administration. The strong US dollar could also pose a problem as Nike looks to grow in China.