Nike Q1 Profit Decline

The biggest sports product manufacturer in the world

Nike (Inc.) (NKE) announced on Thursday that the first quarter profit fell 12% to 567 million U.S. dollars, or 1.23 US dollars per share, compared with the previous year's closing profit, which was 645 million US dollars in the same period last year, or 1.36 US dollars per share.

Revenue grew from $6 billion 80 million in the same period last year to $6 billion 670 million, an increase of 10% over the same period last year.

Analysts surveyed by FactSet expect average earnings of $1.12 per share in the first quarter of and $6 billion 430 million in revenue.

The world's future orders grew by 6%, and gross margins dropped by 80 basis points to 43.5%.

In the first quarter of fiscal 2012, Nike's net profit was $645 million and earnings per share were $1.36.

Excluding the company's planned Cole Haan and Umbro business, Nike's first quarter earnings per share were $1.27, exceeding analysts' expectations.

According to Thomson Reuters survey, analysts expect Nike to earn $1.12 a share in the first quarter.

By region, the first quarter of Nike comes from

Its revenue was 2 billion 706 million US dollars, an increase of 23% over the same period last year of 2 billion 200 million US dollars. The effect of excluding exchange rate changes was 23% over the same period last year. Its revenue from Western Europe was 1 billion 167 million US dollars, a decrease of 5% compared with 1 billion 228 million US dollars in the same period last year. The impact of the exchange rate fluctuation was 6% over the same period last year. The revenue from central and Eastern Europe was 342 million dollars, which was 2%% higher than that of the same period last year.

Nike's first quarter revenue from the Greater China region was $572 million, an increase of 8% over the same period last year of $528 million. The impact of exchange rate changes was 7% over the same period last year. The revenue from Japan was $183 million, a 6% decline over the same period last year, and the effect of excluding exchange rate changes fell by 7%.

Although Nike continues to launch products with new styles, colors and materials for consumers, it resonates with them, but the decline in profit margins still leads to pressure on the company's performance.

In the first quarter, Nike's business overhead costs also increased by 18%, mainly due to key products.

The increase in marketing expenses and support for the Olympic Games and the European Championships.

Nike shares rose 0.51 dollars in the regular trading on the New York stock exchange, closing at $96, or 0.53%.

In post trading, Nike's stock price fell 3.44%. In the past 52 weeks, Nike's highest price was 114,.81 dollars, the lowest price was 81.01 dollars.