Nike's earnings, revenue decline


POSTED: Thursday, March 19, 2009

Nike Inc., the world's largest athletic-shoe maker, said third-quarter profit fell as sales declined for the first time in more than seven years.

Sales dropped 2 percent to $4.4 billion, the Beaverton, Ore.-based company said yesterday.

The lower revenue reflects the strength of the U.S. dollar against other major currencies, according to Claire Gallacher of Caris & Co. in San Francisco.

Net income plunged 47 percent to $243.8 million, or 50 cents a share, in the three months ended Feb. 28.

Excluding a $240.7 million writedown in the value of its investment in British soccer-gear maker Umbro, earnings were 99 cents a share.

Last month, Nike said it would cut up to 1,400 jobs, or 4 percent of its nearly 35,000 staff members.