Here’s How Nike Missed Earnings Expectations

Nike (NYSE:NKE) beat Wall Street expectations, but inventories are growing. As a result, the global retailer is down over 5% in after-hours trading.

Nike Earnings Cheat Sheet

Earnings: Increased to a profit of $457 million ($0.94/share) versus $375 million ($0.76/share) YoY.

Revenue: Up 9.75% YoY to $4.84 billion.

Actual vs. Wall St. Expectations: NKE beat the street, as analysts were expecting EPS of $0.88/share on revenues of $4.8 billion.

Notable Stats: Inventories were $2.3 billion, up 8% YoY.

Future orders for December 2010 to April 2011 delivery rose 11% to $7.7 billion YoY.

Did You Hear That? “We had a great second quarter. Almost every brand, category and geography delivered growth,” said Mark Parker, President and CEO of Nike.

Competitors to Watch: Under Armour (NYSE:UA), Crox (NASDAQ:CROX), Deckers Outdoor Corporation (NASDAQ:DECK), Adidas (PINK:ADDYY), and Sketchers (NYSE:SKX).

Commentary: Shares of Nike look like a swoosh. NKE is comfortably above both its 50 and 200DMA. Let’s see if the sell-off attracts more “buy-the-dips” investors.

Dig Deeper: Research Nike’s stock with our new high tech tools >>

Disclosure: No holdings in companies mentioned.