Nike shares tumbled in after-hours trading on Tuesday after the company reported quarterly profits that topped forecasts, but whiffed on an important gauge of future sales.
The athletic-apparel giant reported adjusted earnings per share of 49 cents on revenues of $8.2 billion.
Worldwide futures orders rose less than expected, by 11%.
Nike shares fell nearly 6% in after-hours trading.
Analysts had forecast that Nike earned 48 cents in adjusted EPS, and that revenues rose 6% to $8.28 billion, according to Bloomberg.
Worldwide futures orders were expected to gain 13%.
Nike’s results come amid growing competition in the athletic-apparel industry and concern that the broader sector is slowing. Morgan Stanley analysts downgraded the stock to “Equal Weight” early in June, noting that established rivals like Adidas and Under Armour had stolen some of Nike’s market share in footwear.
Additionally, they said the rise of online shopping and retail bankruptcies had created excess inventory for Nike.
The company’s shares have lost 15% year-to-date.
More to come
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