The stock was down 3.81% in after-hours trading on Thursday to $84.64 a share, after rising 1.5% during the day.
Earnings per share came in at 68 cents, beating analysts expectations of 65 cents. The earnings result represented 19.3% growth year-over-year. Revenue was $9.6 billion, growing 7% year-over-year, and in line with estimates.
Much of the earnings beat was "driven by higher average selling prices," which enabled Nike to expand its gross margin by 130 basis points to 45%. Morgan Stanley and JPMorgan analysts had both predicted that full-priced selling and an increase in market share would move Nike's gross margin up considerably, making an earnings beat likely.
North America sales came in at $3.81 billion, below estimates of $3.89 billion, while Greater China sales were $1.59 billion, beating estimates of $1.53 billion.
"In Q3, our team once again drove strong, healthy growth across NIKE's complete portfolio," said Mark Parker, chairman, president and CEO of Nike. "Our business momentum is being accelerated by our ability to scale innovation at a faster pace and expand new digital consumer experiences around the world."
Management did not provide guidance in its earnings release. Nike's had risen 3.8% in the past month ahead of its earnings print.
Nike's stock is up 18% year-to-date.
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