Tags: nike | earns | china | orders

Nike's China Orders Fall for First Time in 3 Years

Thursday, 27 September 2012 05:03 PM EDT

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.

© 2026 Thomson/Reuters. All rights reserved.


Companies
Nike'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.
nike,earns,china,orders
176
2012-03-27
Thursday, 27 September 2012 05:03 PM
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