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 17,083.80 -2.83 -0.02%
Nasdaq 4,472.11 0.00 0.00%
S&P 500 1,987.98 0.97 0.05%
Treasuries 2.51 0.04 1.83%
Data as of 2:58am ET
Company Price Change % Change
Facebook Inc 74.98 3.69 5.18%
Ford Motor Co 17.84 0.06 0.34%
Yahoo! Inc 36.17 1.46 4.21%
Bank of America Corp... 15.62 0.10 0.64%
Apple Inc 97.03 -0.16 -0.16%
Data as of Jul 24
Overnight Avg Rate Latest Change Last Week
30 yr fixed4.30%4.43%
15 yr fixed3.30%3.27%
5/1 ARM3.34%3.46%
30 yr refi4.27%4.39%
15 yr refi3.27%3.25%
Rate data provided
by Bankrate.com
View rates in your area
 
Find personalized rates:
Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.