NKE Nike Inc

By Ezequiel Minaya 

Nike Inc. posted quarterly profit that topped Wall Street expectations, propelled by its crucial North America segment.

The world's largest sportswear maker saw domestic sales, which make up nearly half of the top line, grow 3% in its fiscal third quarter, better than the 2.3% expansion some analysts had expected.

Still, Nike has faced increasing competition in the U.S. from rivals Under Armour Inc. and Adidas AG as well as so-called athleisure sellers, and investors may still consider the latest domestic sales growth lackluster.

Shares, which have fallen 9.8% this year, declined 0.7% after hours to $57.58.

Nike reported Tuesday a profit of $1.14 billion, or 68 cents a share, up from $950 million, or 55 cents a share, a year earlier.

Analysts polled by Thomson Reuters had expected per-share profit of 53 cents. The company has beaten quarterly earnings estimates all but once over the past five years.

Revenue increased 5% to $8.43 billion, falling short of the $8.47 billion analysts expected. Excluding currency fluctuations, revenue rose 7%.

The top line has fallen short of consensus views in four of the past six quarters, with the slower growth linked to the North American market.

Write to Ezequiel Minaya at ezequiel.minaya@wsj.com

(END) Dow Jones Newswires

March 21, 2017 17:48 ET (21:48 GMT)

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