Nike's new colour is red
Sep 27, 2012 / 6:11 pm
Nike said Thursday its fiscal first-quarter net income fell 12 per cent as higher sales of its clothing and footwear brands was offset by higher costs and increased ad spending.
Results beat expectations but shares fell 2 per cent in aftermarket trading as investors worried about a slowing of futures orders, which indicate future demand.
Nike, like other consumer products makers, is facing high costs for materials and labour, as well as an uncertain economy in Europe and a slowdown in China. The Beaverton, Oregon-based company has raised prices and cut costs in response.
The world's largest athletic shoe and clothing company says net income for the three months ended Aug. 31 fell to $567 million, or $1.23 per share. That compares with net income of $645 million, or $1.36 per share, last year. Analysts expected the company to earn $1.12 per share
Revenue rose 10 per cent to $6.67 billion from $6.08 billion last year. Analysts expected $6.43 billion.
Revenue jumped 23 per cent in North America, Nike's largest market, to $2.7 billion. In Europe, revenue fell 5 per cent to $1.17 billion. In China, revenue rose 8 per cent to $572 million.
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