Nike Q3 Results: Will strong sales push share prices higher? Let’s Find Out!
Nike Q3 results: Key insights
- Nike posted a 27% jump in sales in its largest market, North America, while a 17% rise in the Europe, Middle East and Africa region.
- Nike alarmed investors of rising margin pressures as it tried to get rid of excess inventory through heavy discounts.
- Nike’s Jordan and LeBron versions drove sales higher during the quarter.
- Nike expects 2023 revenues to increase in the high-single-digit range, compared to mid-single-digit growth previously forecasted.
Nike share price and Nike results:
Nike shares jumped 4% on March 22, 2023 on the back of solid quarterly results pushed higher by robust sales numbers. Nike shares lost 30% of its value in 2022, and has lost about 33% of its value from all time highs last hit in 2021.
Nike share historical performance:
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Decoding Nike Q3 earnings:
- Nike posted revenue of $12.39 billion in the third quarter, up 14% year-on-year, beating estimates of $11.47 billion. The rise in revenues were mostly driven by higher sneaker sales.
- However, margins took a hit as the company faced massive inventory issues due to the coronavirus pandemic and most of the sales were made at discounted prices to ease inventory load.
|$12.4 billion||$13.3 billion||$12.7 billion||$10.8 billion|
Nike net profit
- Net Income for the third quarter ended Feb. 28 came in at $1.2 billion and reported earnings of 79 cents per share, beating expectations of 55 cents per share.
- Net income came in lower than the same quarter last year as the company's margins remained under pressure by a strong U.S. dollar, higher freight costs and Nike's efforts to offer steeper discounts in an attempt to get rid of excess inventory.
|$1.2 billion||$1.3 billion||$1.5 billion||$1.4 billion|
Nike board did not release any dividend for the quarter.
Nike share price target
- Renowned brokerage Oppenheimer has an ‘outperform’ rating on the stock with a share price target of $150.
- Renowned brokerage Raymond James has an ‘outperform’ rating on the firm with a share price target of $130.
- Brokerage Piper Sandler has a ‘neutral’ rating on the stock with a price target of $112.