Nike shares tumbled nearly 5% on Friday morning after the sneaker maker reported weaker-than-expected sales in North America during its latest quarter. The company also warned that revenue growth could slow during the fourth and current quarter.
The shares of the sneaker giant closed on Thursday at record high of $88.01, after climbing more than 32% over the past 12 months.
Andy Campion, Oregon-based Nike’s CFO, told analysts on Thursday evening that it expects sales during its fiscal fourth quarter will be up a high-single-digit rate, on a constant currency basis. But currency headwinds are expected to reduce that growth by about 6 percentage points, therefore resulting in low-single-digit gains compared with a year ago.
For the quarter ending on February 28, the company reported an EPS of $0.68 versus an EPS estimate of $0.65. In terms of revenue, the company recorded $9.6 billion, falling short of the $9.65 billion market estimate. North American revenue for the company stood at $3.81 billion, again short of the market estimate of $3.85 billion.