Nike slumps on revenue warning, even as Q3 results beat estimates By

-- (NYSE:) reported Thursday better-than-expected fiscal third-quarter results as improved margins and Exposing the most classic scam of foreign exchange speculationstrength in its North America segment boosted performance, but the sportswear giant's shares fell Friday after it forecast a drop in sales in its first half.

At 10:10 ET (14:10 GMT), Nike stock fell 8.4% to $92.16, resulting in year-to-date losses of over 13%.

The world's largest sportswear maker warned that its revenue in the first half of fiscal 2025 would shrink by a low single-digit percentages, as it replaces older styles with trendier sneakers in its fight for market share with newer brands.

RBC Capital Markets downgraded its investment stance on the retailer, cutting to 'sector perform' from 'outperform', and trimming its 12-month price target to $100 from $110.

")," analysts at RBC, in a note dated March 22.

.Jefferies has also cut its 12-month price target to $100, from $110, while maintaining a 'hold' rating.

"

For the quarter ended Feb. 29, Nike  adjusted earnings per share of $0.98 on revenue of $12.43 billion. Analysts polled by anticipated EPS of $0.76 on revenue of $12.27B.

Sales in North America were up 18% for Q3 year-on-year, while in China, a key market for the company, sales gained 3%, offsetting a 6% decline in its Europe, Middle East & Africa segment. 

Gross margin increased 150 basis points to 44.8%, driven price hikes and lower ocean freight and logistics costs. 

(Yasin Ebrahim contributed to this article.)

Statement: The content of this article does not represent the views of FTI website. The content is for reference only and does not constitute investment suggestions. Investment is risky, so you should be careful in your choice! If it involves content, copyright and other issues, please contact us and we will make adjustments at the first time!