While an 8% quarterly increase in sales would be good enough to send shares soaring at many companies, that wasn’t the case for Nike.
The company on Tuesday announced that sales jumped “only” 8% last quarter.
Shares tumbles by nearly 5% before slightly recovering on Wednesday.
Nike has been under intense competition from Stephen Curry and the Under Armour brand. The company has also suffered because of a stronger US dollar that has hurt international sales.
Before this rare miss, Nike was beating out almost every Dow stock. On Wednesday it was one of the Dow’s worst performing stocks.
Nike, which recently reached a lifetime sponsorship deal with NBA superstar LeBron James, warned investors it won’t always be operating on all cylinders.
“Not every dimension of our portfolio will have the same level of momentum in each and every period,” Andrew Campion, Nike’s chief financial officer, told analysts during a conference call.
The company’s metrics are still very healthy. Nike’s profits rose by more than expected last quarter and futures orders jumped by 12% globally.
Nike also generated impressive growth around the world, posting double-digit sales increases in North America and rapid growth of 23% in both China and Japan.
Nike said its sales would have been up 14% if currency fluctuations were removed.