Finance: Nike pops after crushing earnings and sales estimates (NKE)

Demand for Nike sneakers in North America has weakened.

• Nike reported third-quarter earnings and sales that beat analysts' forecasts.
• "As we close Q3, we now see a significant reversal of trend in North America ... ," said Mark Parker, Nike's CEO. Demand for the company's sneakers has waned.
• Gross margins fell for a ninth straight quarter, indicating Nike continued to compete with rivals on price.

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Nike on Thursday reported third-quarter earnings that beat analysts' forecasts for earnings and revenue.

The footwear maker reported $0.68 in adjusted earnings per share, excluding charges related to the Tax Cuts and Jobs Act, and $8.98 billion in revenue. Analysts had forecast earnings of $0.53 a share on revenue of $8.85 billion, according to Bloomberg.

Nike shares gained 2% in after-hours trading.

Gross margins fell for a ninth straight quarter, indicating that Nike continued to compete with rivals on price.

Earnings in the prior quarter showed there was less demand for Nike's company's sneakers and sports equipment in North America.

"As we close Q3, we now see a significant reversal of trend in North America ... ," Mark Parker, Nike's CEO, said in the earnings report.

Nike's earnings were released days after the company announced an executive shakeup. Trevor Edwards, the president of Nike Brand, resigned over "workplace behavior" complaints.

Earlier on Thursday, The Wall Street Journal reported that Pershing Square CEO Bill Ackman had exited the stake he acquired in the fourth quarter after earning about $100 million.

Nike's stock has gained about 20% over the past year.

This is a developing story, refresh for updates.

Demand for Nike sneakers in North America has weakened. Read Full Story