US Stocks Movement | Nike drops over 9% in after-hours trading as Q3 profit declines and warning of a possible 20% sales drop in the Chinese market

Golden Ten Data April 1｜Nike (NKE.US) dropped over 9% in after-hours trading, closing at $48. On the news front, Nike announced that revenue for the third quarter ending in February this year was $11.28 billion, flat compared to the same period last year, and slightly higher than the expected $11.24 billion. Net profit decreased by 35% year-on-year to $520 million, with earnings per share at $0.35, beating market expectations of $0.28. Overall gross margin fell by 1.3 percentage points to 40.2%.

During the quarter, the North American market maintained stable growth, with revenue rising by 3% year-on-year to $5.03 billion, slightly lower than the expected $5.04 billion. The Greater China market continued to lag, with revenue falling by 7% to $1.62 billion, but still above the projected $1.5 billion.

Nike Chief Financial Officer Matthew Friend stated on an analyst conference call that he expects fourth-quarter revenue to decline by 2% to 4%, missing analysts’ expected increase of 1.9%. Due to volatility from rising oil prices and ongoing conflicts in the Middle East, he expects sales in the China market this season to drop by 20%.