© Reuters. FILE PHOTO: Nike shoes are seen on display at the Nordstrom flagship store during a media preview in New York, U.S., October 21, 2019. REUTERS/Shannon Stapleton/File Photo
(Reuters) – Nike Inc (NYSE:) reported a decline in its quarterly profit on Thursday, hurt by higher costs and a stronger dollar.
The company’s shares, one of the worst performing Dow components so far this year, fell 2.3% in extended trading.
Elevated freight costs due to a global supply chain crunch are weighing on the company’s bottom line although it expects these supply snags to ease in the coming months.
Nike said costs rose 10% to $3.9 billion in the first quarter.
Major U.S. multinationals, including Microsoft Corp (NASDAQ:) and Coca-Cola (NYSE:)
Nike had said it expects foreign exchange headwinds of about 400 basis points to weigh on its full-year revenue outlook.
The company’s net income fell to $1.47 billion, or 93 cents per share, in the first quarter ended August 31, from $1.87 billion, or $1.16 per share, a year earlier.
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