Nike (NKE) Drops on Q3 Miss; Future Orders Miss Estimate

March 17, 2011 4:27 PM EDT
Nike Inc. (NYSE: NKE) shares are dropping in extended trade on Thursday after the company reported third-quarter results below the Street's view and disclosed disappointing future orders.

The sporting apparel maker reported third-quarter earnings of $1.08 per share, 3 cents below the analyst estimate of $1.11 per share.

Revenue for the company known for its iconic swoosh rose 7 percent to $5.08 billion for the three month period ended February 28, 2011, missing the market consensus of $5.17 billion.

Future orders were estimated at up 11 percent or up 9 percent excluding currency changes, missing the FX analyst estimate of up 9.8 percent.

"Moving forward, we’ll continue to leverage our scale, financial resources, and operational discipline to drive near and long-term value to shareholders," said Mark Parker, President and CEO of Nike.

The company said gross margin declined 110 basis points to 45.8 percent mainly as a result of higher product costs, elevated freight costs, including additional airfreight incurred.

Shares of Nike are down 6 percent to $80.02 in aftermarket movement on Thursday.

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