Nike falls after forecasting surprise Q4 sales drop

Shares of sportswear giant Nike NKE.N fall ~9% to $48 in extended trading

Nike sees surprise drop in fourth‑quarter sales as persistent weakness in China and slow progress in clearing older inventory cloud its turnaround efforts

CFO Matt Friend, in post-earnings call, says Nike's sales in current quarter is expected to drop in range of 2% to 4%, compared with estimates of 1.9% rise - data compiled by LSEG

China sales falls 7% in Q3, while gross profit margin contracted for sixth straight quarter, falling 130 basis points to 40.2%, mainly due to tariffs

CFO sees Q4 China sales falling 20%, citing volatility from rising oil prices and ongoing fighting in Middle East

Co, however, beats Q3 sales and profit expectations, with sales in the North American segment, Nike's biggest by revenue, growing 3%

Shares fell 17% YTD