Nike (NYSE:NKE) shares fell more than 4% on Wednesday after the company reported its Q3 results, which beat estimates, but the company has cautioned about the challenges of maintaining margins due to the ongoing effort to clear out excess inventory by offering significant discounts.
Q3 EPS came in at $0.79, better than the Street estimate of $0.55. The company's revenue for the quarter amounted to $12.4 billion, surpassing the Street estimate of $11.47 billion.
As a result of the robust Q3 performance, Nike now predicts that its reported revenue for fiscal 2023 will increase in the high single digits, representing an improvement from the mid-single-digit guidance provided in the previous quarter, despite foreign exchange headwinds of around 600 basis points. This estimate translates into flat to low single-digit revenue growth for Q4.