Nike Q3 EPS Tops Estimates at $0.35 While Converse Sales Drop 35%
Nike reported fiscal Q3 adjusted EPS of $0.35, ahead of the $0.31 consensus, and revenue of $11.3 billion, roughly flat year-over-year but down 3% on currency-adjusted basis. Wholesale revenue rose 5% to $6.5 billion while direct-to-consumer sales fell 4% to $4.5 billion and Converse sales plunged 35% to $264 million.
1. Q3 Financial Results
Nike delivered adjusted Q3 earnings per share of $0.35, beating the $0.31 consensus, on $11.3 billion revenue that was flat year-over-year and down 3% on a currency-adjusted basis.
2. Segment Performance
Wholesale revenue increased 5% to $6.5 billion while Nike Direct sales declined 4% to $4.5 billion, reflecting uneven demand across channels.
3. Brand Breakdown
Nike Brand sales rose 1% to $11 billion, in contrast to a 35% plunge in Converse revenue to $264 million during its global market reset.
4. Leadership and Market Reaction
CEO Elliott Hill emphasized continued turnaround efforts and quality improvements, yet shares slipped over 3% in after-hours trading on cautious investor sentiment.