NIKE last night reported first quarter earnings 12 per cent lower than the same period last year as the higher cost of raw materials took its toll on the sportswear giant.
For the three months to the end of August, Nike’s net income fell to $567m (£349.2m), or $1.23 per share. That compares with net income of $645m, or $1.36 per share, last year. Revenue rose 10 per cent to $6.67bn from $6.08bn last year.
Future orders, or orders of Nike branded shoes and clothes scheduled for delivery from September 2012 until January 2013, rose six per cent. Last year, future orders were up 16 per cent.
However, orders in the China region, which includes Taiwan and Hong Kong, fell five per cent – worst than anticipated – and confirming a slowdown in one of its main markets.
The shares fell almost four per cent in after-hours trading.