Nike shares sink after earnings miss

@CNNMoneyInvest June 28, 2012: 7:25 PM ET
chart_ws_stock_nikeinc_2012628171054.top.png

Click the chart for more info on Nike shares.

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

Index Last Change % Change
Dow 18,288.63 155.93 0.86%
Nasdaq 5,008.10 44.57 0.90%
S&P 500 2,117.39 12.89 0.61%
Treasuries 2.08 0.08 4.10%
Data as of 7:35pm ET
Company Price Change % Change
Bank of America Corp... 16.01 0.20 1.27%
Apple Inc 129.09 0.63 0.49%
Cisco Systems Inc 30.19 0.68 2.30%
General Electric Co 26.11 0.12 0.46%
Microsoft Corp 43.88 0.03 0.07%
Data as of 4:04pm ET
Overnight Avg Rate Latest Change Last Week
30 yr fixed3.85%3.94%
15 yr fixed3.03%3.04%
5/1 ARM3.49%3.50%
30 yr refi3.93%3.99%
15 yr refi3.12%3.13%
Rate data provided
by Bankrate.com
View rates in your area
 
Find personalized rates: