Shares of global athletic apparel company (NYSE: NKE) dropped on Friday after the company dropped financial results for its fiscal third quarter of 2024. The company's results fell short of management's previous outlook. And that's why Nike stock was down about 7% as of noon ET.
In Q3, Nike's revenues were up less than 1% year over year thanks to higher prices. These "strategic pricing actions" were intended to improve the company's profit margins, which they did. But not by as much as management had expected.
For Q3, Nike had a gross margin of 44.8%, even though management had expected a gross margin of at least 44.9%. That's a minuscule miss. However, management also expected year-over-year earnings growth. But its diluted earnings per share (EPS) fell 3% to $0.77.
Source Fool.com