Site icon China Economic Review

Nike's China orders drop

Nike (NKE.NYSE, NKE.FRA) reported a 12% decline in fiscal first-quarter profits, and its futures orders in China dipped for the first time since 2009, reflecting economic malaise, Reuters reported. Orders in China dropped 5% in the first quarter, compared to an increase of 27% last year. The company’s sluggish orders trumped better-than-expected earnings of US$1.23 per share to lead to a 3% fall in its share price at the end of trading Thursday. Analysts had predicted net profits of US$1.12 per share, according to Thompson Reuters data. Nike’s revenue increased 10% to US$6.7 billion, beating average analyst estimates of US$6.42 billion. “The (Chinese) consumer is becoming more discerning and sophisticated. At the same time the economy seems to be slowing, creating short-time challenges for retailers,” president of Nike Charlie Denson said to analysts.

Exit mobile version