Nike shares fell roughly 5 percent on Wednesday, after the athletic wear company reported revenues that missed Wall Street's expectations.
Analysts quickly brushed off the miss, calling the pullback in Nike's stock — which is up more than 20 percent over the past year — a buying opportunity for investors.
In particular, they pointed to "robust" future orders from retailers, which signal that demand remains healthy at its wholesale partners. What's more, they said Nike's forthcoming lineup of products — including the buzzed-about self-lacing sneaker — should continue to spur demand among shoppers.
"We believe this is overreaction," BB&T analyst Corinna Freedman told CNBC.
Nike on Tuesday reported earnings per share of 55 cents, beating expectations for 48 cents a share. However, revenues fell short of analysts' forecast of $8.2 billion, as the strong dollar took a bite out of its global sales. The company generated sales of $8.03 during the quarter.
But while Nike's revenues disappointed, the retailer still grew sales by 8 percent, and by 14 percent excluding the impact of currency. Those results easily top those from the overall industry. According to Retail Metrics data, of the 107 retailers who have reported quarterly earnings, revenues are up just 3.7 percent year-over-year.
Expectations, however, had been high for Nike heading into its earnings report. On Monday, JP Morgan added the brand to its analyst focus list, replacing smaller competitor Lululemon. Buzz had also been building around the brand following a two-day event it held last week, when it debuted the highly anticipated self-lacing sneaker.
"Nike has never been in a better position to deliver against our long term goals," CEO Mark Parker said on the company's conference call.
Despite his bullish comments, analysts said the company's implied fourth-quarter guidance appears soft at around 40 cents a share. That compares to consensus estimates of 54 cents. They did, however, say that the company's results could top its forecast.
"I think they're being a little bit conservative on the guidance," Morningstar analyst Paul Swinand told CNBC.
Nike is also facing increasing competition in the athletic wear space, as brands such as Under Armour and Lululemon continue to generate sales growth.
During the most recent quarter, Under Armour's net revenues rose 31 percent to $1.17 billion. Lululemon is scheduled to report its results next week.