NIKE shares fell almost six per cent yesterday after it posted future orders results that missed analysts’ expectations and said it may have to raise its prices.
The world’s largest sportswear firm said a jump in cotton costs could trigger a rise in the price of its goods.
Orders for Nike shoes and clothing for delivery between December and April were $7.7bn (£4.98bn), a rise of 11 per cent.
Analysts said Wall Street was expecting a figure of 12 or 13 per cent.
“They didn’t beat rising expectations for future orders and that’s why the stock’s down,” said Jon Fisher, portfolio manager with Fifth Third Asset Management, which owns Nike shares.
Nike executives repeated comments from the previous quarter that rising cotton, labour and transport costs would hurt profit margins in the second half of the year despite rising demand.
They said the cost pressures would ease over the next 12 to 18 months as the world economy picked up.
Chief executive Mark Parker said: “As supply and demand find a new normal in the recovering economy, our industry is going to experience margin pressure due to rising input costs.” Nike’s shares closed 5.8 per cent lower at $86.78.