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 21,636.78 -915.39 -4.06%
Nasdaq 7,502.38 -295.16 -3.79%
S&P 500 2,541.47 -88.60 -3.37%
Treasuries .75 -0.06 -7.64%
Data as of 6:12pm ET
Company Price Change % Change
Ford Motor Co 8.29 0.05 0.61%
Advanced Micro Devic... 54.59 0.70 1.30%
Cisco Systems Inc 47.49 -2.44 -4.89%
General Electric Co 13.00 -0.16 -1.22%
Kraft Heinz Co 27.84 -2.20 -7.32%
Data as of 2:44pm ET
Overnight Avg Rate Latest Change Last Week
30 yr fixed3.80%3.88%
15 yr fixed3.20%3.23%
5/1 ARM3.84%3.88%
30 yr refi3.82%3.93%
15 yr refi3.20%3.23%
Rate data provided
by Bankrate.com
View rates in your area
 
Find personalized rates:

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.