Nike shares hit by poor sales forecast
23 March 2016
- From the section Business
Nike shares fell as much as 7% in after-hours trading after it released a weaker-than-expected growth forecast.
The world’s largest sportswear maker said it expects sales to increase by a high single digit percentage and for overall earnings to be in the low teens in the fiscal year ending May 2017.
That was lower than analyst estimates for between 10 and 15% growth.
For the three months to March, Nike posted a profit of $950m (£668mm) with revenues rising nearly 8% to $8bn.
The sports giant has seen its overseas sales eroded by the impact of a strong US dollar and other currency fluctuations.
Analysts are also concerned that consumers are reining back on spending due to the tepid global economy.
However, China has remained a bright spot for Nike, with revenues there jumping 23% during the last quarter.
Nike is expanding its e-commerce offerings in the country and saw particularly strong sales of its footwear, clothes and athletic equipment over the Lunar New Year period.
To help boost sales, Nike is developing a line of new technology-infused products including electronic running shoes that can lace themselves.
This post was written by FSB News