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BEAVERTON, United States — Nike Inc. posted disappointing third-quarter sales and signaled that orders in North America and some overseas markets are increasing more slowly than projected, raising concerns about growth at the world's largest sporting-goods maker.
Revenue rose 7.7 percent to $8.03 billion in the period, which ended Feb. 29, the company said in a statement Tuesday. Analysts estimated $8.2 billion. Futures orders in emerging markets — an indicator of sales — were up 14 percent, excluding currency effects. Analysts had estimated 16.1 percent.
The strong U.S. dollar weighed on Nike’s results by reducing the value of revenue generated overseas. The Beaverton, Oregon-based company also is coping with sluggishness in some overseas economies after years of strong growth. Still, its business in China is booming, bucking a broader slowdown in that country.
“Expectations were high, so they have to nail it or blow it out — and they didn’t,” said Brian Yarbrough, an analyst for Edward Jones. “Any hiccup can cause this kind of reaction in the stock.”
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The shares, which had gained 3.8 percent this year through the close on Tuesday, fell as much as 5.3 percent to $61.47 in after-hours trading.
Even as sales grew more slowly than predicted, profit beat estimates. Earnings climbed to 55 cents a share in the period, helped by a lower tax rate. Analysts predicted an average of 49 cents, according to data compiled by Bloomberg. The results marked the 15th straight quarter that Nike has beaten profit projections, dating back to the middle of 2012.
In North America, futures orders rose 10 percent, excluding currency effects. Analysts estimated 11.6 percent. They grew 17 percent worldwide by that measure, exceeding a projection of 16.1 percent.
By Matt Townsend; editors: Kevin Orland and Nick Turner.