Nike (NKE) Decimates Q3 Expectations, Future Orders Remain Strong

Nike, Inc (NYSE: NKE) shares are higher in post-market action following its third-quarter 2012 earnings report, issued after the market closed Thursday.

Revenue for the apparel giant rose 15 percent from $5.08 billion in the same period last year to $5.85 billion. Net income jumped 7.1 percent to $560 million, or $1.20 per share.

Analysts on the Street were looking for revs of $5.82 billion and EPS of $1.17.

Gross margin consolidated two percentage points to 43.8 percent.

Future orders totaled $9.4 billion at the end of the quarter, up 15 percent (18 percent ex foreign currency) from the same period last year. The Street was expecting a 13 percent increase.

Inventories rose 32 percent to $3.4 billion, which Nike attributed to "significantly higher product input costs...changes in product mix...higher wholesale unit inventories in support of strong demand and as a result of more timely deliveries from our product suppliers."

Following an initial move lower, shares are up about 1 percent in late-Thursday trading.

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