Nike pops after crushing earnings and sales estimates
Nike on Thursday reported third-quarter earnings that missed analysts forecasts for earnings but beat on revenue.
The footwear maker reported adjusted earnings per share of $0.68 excluding charges related to the Tax Cuts and Jobs Act, and $8.98 billion in revenue. Analysts had forecast earnings of $0.53 a share on revenue of $8.85 billion, according to Bloomberg.
The stock gained 2% in after-hours trading.
Gross margins fell for a ninth straight quarter, indicating that Nike was competing hard with rivals on price.
Earnings in the prior quarter showed there was less demand for Nike's company's sneakers and sports equipment in North America.
"As we close Q3, we now see a significant reversal of trend in North America ... ," Mark Parker, Nike's CEO, said in the earnings report.
Nike's earnings were released days after the company announced an executive shakeup. Trevor Edwards, the president of Nike Brand, resigned over "workplace behavior" complaints.
Earlier on Thursday, The Wall Street Journal reported that Pershing Square CEO Bill Ackman had exited the stake he acquired in the fourth quarter after earning about $100 million.
Nike's stock has gained about 20% over the past year.
This is a developing story, refresh for updates.