Nike Q3 Results: Will strong sales push share prices higher? Let’s Find Out!

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Nike Q3FY23 highlights

Nike Q3 results: Key insights

  1. 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.
  2. Nike alarmed investors of rising margin pressures as it tried to get rid of excess inventory through heavy discounts.
  3. Nike’s Jordan and LeBron versions drove sales higher during the quarter.
  4. 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: 

1 Day1 Month1 Year5 Years

Decoding Nike Q3 earnings: 

Nike Revenue 

  • 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 dividend

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.