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Trading Nike's post-earnings tumble

Nike shares slid after disappointing earnings Tuesday, but some "Fast Money" said investors should not fret, yet.

"These earnings weren't bad. They just missed really good estimates," said trader Brian Kelly, noting the stock enjoyed a "nice run" before the dip.

The sportswear giant posted diluted profit of 55 cents per share for its fiscal 2016 third-quarter on $8.03 billion in revenue. Earnings climbed 22 percent from 45 cents in the previous year, while sales rose 8 percent from $7.46 billion.

Nike's Elite Series Gold Collection
Source: Nike Basketball | Facebook
Nike's Elite Series Gold Collection

While Nike beat Wall Street's earnings expectation, it fell short of sales estimates.

Trader Tim Seymour, who owns Nike shares, said investors should stick with the stock. He noted Nike's dominance in the athletic wear market and said people were inclined to sell because of the stock's recent strength.

Shares have climbed 27 percent in the last year.

However, trader David Seaburg cautioned about possible difficulty ahead. He said he saw "cracks in the foundation," like discounting on online shoe sales.


Disclosures:

Brian Kelly

Brian Kelly is long BBRY, Bitcoin, GLD, GLD puts, SH, SLV, TLT, US Dollar, UUP, Yen; he is short Aussie Dollar, BLK, British Pound, CS, DB, Euro, EWH, FRC, Hong Kong Dollar, UBS, SPY, Yuan, 5-Year Note Futures

Dan Nathan

Dan is long AAPL April Put Fly, long PFE buy-write, long TWTR, long UUP March calls, long GE May 28 puts, long JPM April puts, long XLP March put spread, long XRT March puts, long XLB March puts, long HD put butterfly, long QQQ puts, long INTC March/April put spread, long QCOM April put spreads, long HYG June puts, long IWM May and September puts, long XLE April/June put spread

David Seaburg

Opinions expressed by David Seaburg are solely his own and do not reflect the views and opinions of Cowen Group, Inc

Tim Seymour

Tim Seymour is long AAPL, AVP, BAC, BBRY, DO, EDC, F, FCX, GM, GOOGL, INTC, NKE, SINA, T, TWTR, VZ, XOM. Tim's firm is long BABA, BIDU, CLF, KO, MCD, MPEL, PEP, PF, SAVE, SBUX, VALE, WMT,YHOO, short HYG, IWM.