Nike Tumbles Most Since 2008 as Profit Drops

[160jordansdeep]

Nike Inc. (NKE) (NKE), the world’s largest sporting-goods company, tumbled the most in four years after fourth-quarter profit unexpectedly declined for the first time since 2009 as marketing costs increased and sales growth slowed.

Nike fell 11 percent to $86.29 at 10 a.m. in New York and earlier slid as much as 12 percent for the largest intraday decline since June 26, 2008. The stock had gained (NKE) 0.5 percent this year through the end of regular trading yesterday.

Net income in the quarter ended May 31 declined 7.6 percent to $549 million, or $1.17 a share, Beaverton, Oregon-based Nike said yesterday in a statement. That’s the first drop since the November 2009 quarter. Analysts projected $1.37 a share, the average of 20 estimates. Profit had topped analysts’expectations in 22 of the past 23 quarters.

Chief Executive Officer Mark Parker responded to higher costs by introducing widespread price increases in January to improve Nike’s gross profit margin, which narrowed for the sixth straight quarter. The company’s sales also slowed in Europe, where it generates about a quarter of its revenue, as recession and government cuts curbed consumer spending.

“We would not be buyers of the stock

 

[atlien seeko]

I find this hard to believe.

 

[downyboy]

^ what is hard to believe?

 

[epidemik the great]

should've had a wider release for them Yeezy's 

 

[cap1229]

Finally.

still their worse is better than many's best so they can pick it up.

 

[HEATHEN]

price hike in the future? maybe it'll weed out some of these broke dudes tryna come up on a pair just to resell.
i aint mad at the real resellers, they provide an invaluable service, but these lil lame *$@@*! that camp out for 2 days just to get a pair or two for the flip is some clowns. 

 

[703 hwy]

Originally Posted by ATLien Seeko

I find this hard to believe.

Word they're making money hand over fist

selling $10 shoes for $150+ yea right

 

[160jordansdeep]

Originally Posted by SneakerHeathen

price hike in the future? maybe it'll weed out some of these broke dudes tryna come up on a pair just to resell.
i aint mad at the real resellers, they provide an invaluable service, but these lil lame *$@@*! that camp out for 2 days just to get a pair or two for the flip is some clowns. 

the first price hike was this past November 
there will be another sooner then later 

none of this has to do with reselling 

buyers will adjust 

real resellers will adjust

people who want to only pay retail will end up paying a higher box price or some who cant afford to will be priced out will have to make a decision to continue to buy sneakers and other nike products 

people who have extra income will not be affected and over time neither will nike  

 

[blazinrook]

i'm seeing a lot of culture wearing Nike again for to day to day purposes.
Athletic gear is a style for the common people which is cool

I'm sure there is nothing to worry about.

 

[firepower23]

Damn! poor bastards, I hope they'll be ok ....maybe Hyper will help them out if they're strapped for cash.

 

[PRIME]

I hope it continues to drop. Nike needs to get over themselves. All that limited hype @!$* is coming back to haunt them.

 

[bjamez20]

at this having anything to do with their limited sneakers and everything. i'm sure the yeezy's account for <1% of Nike's profit. i'm sure what's taking away from their bottom line is all the garbage low/mid range shoes that just sit on the shelves

 

[k town trash]

its nike... company literally will never die.

 

[Majorbread]

Time to buy tho

$NKE

 

[703 hwy]

They just got that NFL account, though.

 

[vood99]

Originally Posted by bjamez20

at this having anything to do with their limited sneakers and everything. i'm sure the yeezy's account for <1% of Nike's profit. i'm sure what's taking away from their bottom line is all the garbage low/mid range shoes that just sit on the shelves

There's a definite oversaturation of product and helluva lot of retail outlets.

  

 

[160jordansdeep]

Originally Posted by 40inchBoost

Time to buy tho

$NKE

if the price drops another $10.00 or $15.00 then yes 
nike stock today took $9.11 loss today 

closing price was $87.78

 

[jesusshuttlesworth34]

Under Armour is definitely moving up the charts and has secured a lot of the collegiate sports market. 

Cole Haan closed a decent number of stores last year and a lot of stores were operating in the red. 


Nike still has a free grassroots marketing juggernaut in NikeTalk and tons of new shoe fiends to eat up their crappy products.  They will be ok. 

 

[mecks]

I don't get it....

Nike's Jordan Sales Up 89% Year-Over-Year
Ben Duronio | Jun. 27, 2012, 7:35 AM | 322 |

Overall, Nike saw its year-over-year share gains in the US increase 31 percent year-over-year last week, according to UBS.
Individually, the Jordan brand increased 89 percent year-over-year last week. Nike and Converse were up year-over-year as well, but just 19 and 4.5 percent respectively. Basketball season ending last week was the big driver for the huge spike in Jordan sales.
Basketball sales were up over 60 percent from the previous week, and trailing four-week basketball sales grew 21 percent -- which made this "one of the strongest basketball seasons in years.

 

[HEATHEN]

Originally Posted by FIREPOWER23

Damn! poor bastards, I hope they'll be ok ....maybe Hyper will help them out if they're strapped for cash.

 

[6 Rings G.O.A.T.]

160jordansdeep wrote:

---

40inchBoost wrote:

---

Time to buy tho

$NKE
if the price drops another $10.00 or $15.00 then yes 

nike stock today took $9.11 loss today 

closing price was $87.78

definitely going to keep my eyes on the market..
  

 

[s dubl]

too many releases back to back to back, people passing on ___ to get ___ and waiting for ___ to hit outlets....

 

[mister916]

Release more Yeezy's with 500% mark up.

 

[theprinceofde]

Originally Posted by ATLien Seeko

I find this hard to believe.

Me to especially since supposedly JB sales went up 89% year over year.

 

[babylonzion]

Originally Posted by 703 Hwy

Originally Posted by ATLien Seeko

I find this hard to believe.

Word they're making money hand over fist

selling $10 shoes for $150+ yea right

the size amount of this dip in their profit amounts to a single grain of sand on a beach