Nike Inc.'s first-quarter earnings were lower than last year, and orders in China for the next several months fell for the first time in three years, choking off what had been a growth engine for the world's largest sportswear maker.
Higher costs of materials used in Nike's shoes and T-shirts continue to hurt margins and Nike shares fell 2.9 percent in after-market trading Thursday.
Futures orders, or orders of Nike branded shoes and clothes scheduled for delivery from September 2012 through January 2013, rose 6 percent. Last year, they were up 16 percent.
In China, futures orders fell 5 percent, after rising 27 percent last year.
The slumping orders overshadowed earnings that beat analysts' expectations.
For the quarter ended Aug. 31, Nike earned $1.23 a share compared to $1.36 a share last year. Analysts on average forecast $1.12 a share, according to Thomson Reuters I/B/E/S.
Net income was $567 million, compared with $645 million last year in the same quarter.
Revenue rose 10 percent to $6.7 billion, compared with the average analyst estimate of $6.42 billion.
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