Nike misses quarterly profit estimates on higher marketing expenses
To generate more demand Nike has collaborated with more celebrities, sped up product development in its popular Jordan sneaker brand and ramped up marketing around major sporting events.
However, the initiatives have not come cheap with the company’s costs rising 10% to $12.7 billion in the past 12 months.
Nike’s net income fell to $989 million, or 62 cents per share, in the fourth quarter ended May 31, from $1.14 billion, or 69 cents per share, a year earlier.
Analysts on average had expected earnings of 66 cents per share, according to IBES data from Refinitiv.
Revenue rose 4% to $10.18 billion, beating analysts’ average estimate of $10.16 billion.
Nike’s shares fell about 1% to $83.09 in extended trading.