Nike (NYSE: NKE) shares were set to tumble Friday, following the sneaker maker reporting weaker-than-expected sales in North America during its fiscal third quarter, hurt, in part, by fewer people buying Converse-branded merchandise.
Although its earnings topped analysts' expectations, and total revenue was in-line with estimates, Nike shares sank more than 4% after the bell on the news. The stock had closed Thursday at a record high of $88.01.
Nike reported net income of $1.1 billion, or 68 cents a share, compared with a net loss of $921 million, or a loss of 57 cents per share, a year ago. Earnings per share came in three cents ahead of analysts' expectations.
Revenue was up 7% during the quarter to $9.611 billion from $8.984 billion a year ago. That was about in-line with what analysts had expected. It marked the first time in six quarters, though, that Nike didn't top expectations.
Within that, sales at the Converse shoe brand were down 2% to $463 million, primarily driven by declines in the U.S. and Europe.
In North America, sales were up 7% to $3.81 billion, excluding currency changes. That was softer growth than what some people had expected.
One analyst from Telsey Advisory Group was calling for North American sales to be up 10% during the third quarter.
Nike said its digital business surged 36% as it continues to invest in online initiatives like its mobile app and customization options for customers.
Nike shares collapsed $3.96, or 4.5%, mid-morning Friday to $84.04
