Shares of NIKE, Inc. (NKE) are down more than 11% Friday morning after reporting lower profit in the first quarter.
Net income in the first quarter declined to $1.468 billion or $0.93 per share from $1.874 billion or $1.16 per share in the same quarter a year ago, impacted by increase in expenses. Nevertheless, earnings beat the average estimate of analysts polled by Thomson-Reuters of $0.92 per share.
Revenue for the quarter, however, increased 4% year-on-year to $12.687 billion.
The company said its gross margin decreased 220 basis points to 44.3 percent, primarily driven by higher freight and logistics costs.
NKE touched a new low of $82.50 this morning, before edging up to $84.28 currently. The stock’s 52-week high stands at $179.10.
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