Nike shares sink after earnings miss

@CNNMoneyInvest June 28, 2012: 7:25 PM ET
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NEW YORK (CNNMoney) -- Nike shares plunged 13% in after-hours trading Thursday following a quarterly earnings report that missed analyst estimates.

The sportswear giant's quarterly revenue rose 12% versus last year to $6.5 billion, but net income fell 8% on declining margin and increased expenses.

In particular, Nike cited factors including rising materials costs, a higher effective tax rate and increased marketing expenses surrounding events like the Summer Olympics and soccer's European Championship.

The company also took a $24 million charge related to its restructuring in Western Europe, and incurred a stiff customs fee in an unnamed emerging market country based on its imports in previous years.

Nike's (NKE, Fortune 500) earnings per share were $1.17; analysts surveyed by Thomson Reuters had expected them to hit $1.37.

Nike announced plans last month to divest its Cole Haan and Umbro businesses. Those two units lost a combined $43 million during Nike's 2012 fiscal year, which concluded at the end of May.

Other sportswear producers and retailers also slumped after-hours on the news. Under Armor (UA) dropped 3.9%, Dick's Sporting Goods (DKS, Fortune 500) slipped 1.0%, and Lululemon Athletica (LULU) fell 2.6%. To top of page

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