Nike shares are falling as the sneaker maker warns of a sales slowdown

An employee carries Nike Inc. sneakers for a customer at a Dick's Sporting Goods Inc. store in Sterling Heights, Michigan

Sean Proctor | Bloomberg | Getty Images

An employee carries Nike Inc. sneakers for a customer at a Dick’s Sporting Goods Inc. store in Sterling Heights, Michigan

Nike shares fell Friday morning after the sneaker maker reported weaker-than-expected sales in North America during its latest quarter in addition to warned revenue growth could slow down during the fourth in addition to current quarter.

The company told analysts Thursday evening of which the item expects sales during its fiscal fourth quarter will be up a high single-digit rate, on a constant currency basis. although currency headwinds are required to reduce of which growth by about 6 percentage points, CFO Andy Campion said, resulting in low single-digit gains compared that has a year ago.

Nike shares were falling more than 4.5 percent Friday morning. The stock had closed Thursday at a record high of $88.01, having climbed more than 32 percent over the past 12 months.

Though Nike’s fourth-quarter earnings outlook is usually shy of Street estimates, J.P. Morgan analyst Matt Boss said in a research note of which Nike has been “historically conservative” with its forecast.

He said Nike selling more directly to consumers, in addition to at full cost, should continue to boost gross margins in addition to help the company exceed its own outlook.

Separately, Nomura Instinet analyst Simeon Siegel raised his cost target on Nike shares to $91 by $85, following the retailer’s third-quarter earnings Discharge.

“In This particular environment, Nike is usually showing its stripes, standing as the clear outlier to the recurring revenue ceiling of which dominates all brands,” Siegel said.

On Thursday, Nike told analysts its investments in online initiatives in addition to its “Consumer Direct Offense” — where the item’s focused on getting brand new products to market with speed — were just starting to pay off.

“We are still inside the early stages of executing the ‘Consumer Direct Offense’ with much more opportunity ahead of us,” Campion said. “So, we will continue to focus our investments on the digital transformation of Nike in addition to inside the areas of our business where we see the greatest potential to grow in addition to create value for both consumers in addition to shareholders.”