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After Hours Action: Nike

Nike landed in the hotseat in extended trade, with shares slipping about 5% after the company posted a lower-than-expected quarterly profit.

As Nike warned late last year, rising costs for cotton, labor and transportation hurt profit margins.

By the numbers, gross margin fell 1.1 percentage points to 45.8 percent in its third fiscal quarter. Revenue in the quarter ended Feb. 28 rose 7.3 percent to $5.08 billion.

Future orders, excluding currency exchange rates -- a key measure of sales growth -- rose 9 percent, in line with the estimates of several Wall Street analysts.

Net income in the fiscal third quarter rose 5.2 percent to $523 million, or $1.08 a share, compared with $497 million, or $1.01 cents a share, in the year-earlier quarter.

That was below analysts' average expectation of $1.12 per share, according to Thomson Reuters I/B/E/S.

What’s the trade?

Guy Adami isn't terribly worried by the earnings. He notes that Nike shares typically find support between $78 and $80. And he says, "my sense is that the stock finds support between $78 and $80 again.”



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Trader disclosure: On March 17, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders;

finerman's firm is short (iwm); finerman's firm is short (mdy); finerman's firm is short (spy); finerman's firm is short (xrt); finerman's firm is long s&p 500 puts; finerman's firm is long russell 2000 puts; finerman's firm and finerman own (aapl); finerman's firm owns (bac) leaps, finerman owns (bac); finerman's firm and finerman own (cvs); finerman owns (goog); finerman's firm and finerman own (hpq); finerman's firm owns (ibm); finerman's firm owns (jpm) leaps, (jpm); finerman owns (jpm); finerman's firm owns (mcd); finerman's firm and finerman own (msft); finerman's firm is short (spy); finerman's firm owns (tgt); finerman owns (uso); finerman owns (ung); finerman's firm owns (wmt)

terranova owns (vrts); terranova owns (c); terranova owns (gs); terranova owns (pnc); terranova owns (usb); terranova owns (jpm); terranova owns (upl); terranova owns (cree); terranova owns (ms); terranova owns (pbr); terranova owns (bax); terranova owns (teva); terranova owns (ibm); terranova owns (btu); terranova owns (cnx); terranova owns (pot); terranova owns (flx); terranova owns (xom); terranova owns (dis); terranova owns (mcd); terranova owns (cve); terranova owns (cvi); terranova owns (cnq); terranova owns (rsx); terranova owns (su); terranova owns (Fcx)

adami owns (agu); adami owns (btu); adami owns (c); adami owns (gs); adami owns (intc); adami owns (msft); adami owns (nue)

jon najarian owns (aapl), is short (aapl) calls; jon najarian owns (brk.b), is short (brk.b) calls; jon najarian owns (cboe), is short (cboe) calls; jon najarian owns (cme), is short (cme) calls; jon najarian owns (nyx), is short (nyx) calls; jon najarian owns (cnx), is short (cnx) calls; jon najarian owns (crm), is short (crm) calls; jon najarian owns (chs), is short (chs) calls; jon najarian owns (cstr), is short (cstr) calls; jon najarian owns (hk), is short (hk) calls; jon najarian owns (kwk), is short (kwk) calls ; jon najarian owns (mtw), is short (mtw) calls; jon najarian owns (nyx), is short (nyx) calls; jon najarian owns (paas), is short (paas) calls; jon najarian owns (slv), is short (slv) calls; jon najarian owns (wnr), is short (wnr) calls; jon najarian owned (wmt), was short (wmt) on 2/15/11 ; jon najarian owns (jrcc), is short (jrcc) calls

For Brian Kelly
Accounts Managed By Kanundrum Capital own (FXY) puts
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Accounts Managed By Kanundrum Capital are short (LOW)
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Terranova Is Chief Market Strategist Of Virtus Investment Partners, Ltd
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For Anthony Scaramucci
SkyBridge Capital Is A Fund Of Funds Manager
Funds Held May Or May Not Own The Recommended Securities

For Len Brecken
Brecken Is Short (NFLX)

SOT Brian Meredith ( 3/17/2011)
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For Scott Nations
Nations Is Long S&P Implied Volatility

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