Nike misses quarterly profit estimates on higher marketing expenses

(Reuters) - Nike Inc missed analysts' estimates for quarterly profit on Thursday, as the world's largest sportswear maker spent more on marketing and new product launches. 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

Reuters June 28, 2019 03:05:30 IST
Nike misses quarterly profit estimates on higher marketing expenses

Nike misses quarterly profit estimates on higher marketing expenses

(Reuters) - Nike Inc missed analysts' estimates for quarterly profit on Thursday, as the world's largest sportswear maker spent more on marketing and new product launches.

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 reported quarter.

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.

(Reporting by Uday Sampath in Bengaluru; Editing by Shounak Dasgupta)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

also read

Gilead nears deal to buy Immunomedics for more than $20 billion, WSJ reports
Business

Gilead nears deal to buy Immunomedics for more than $20 billion, WSJ reports

(Reuters) - Gilead Sciences Inc is nearing a deal to buy biopharmaceutical company Immunomedics Inc for more than $20 billion, the Wall Street Journal reported on Saturday, citing people familiar with the matter. A deal for Immunomedics, which last month reported positive data from a late-stage study for its breast-cancer drug, could be announced Monday if not sooner, the Journal said https://www.wsj.com/articles/gilead-nears-deal-to-buy-immunomedics-for-more-than-20-billion-11599936777?mod=hp_lead_pos2. Gilead and Immunomedics did not respond immediately to emailed requests from Reuters for comment

China bans German pork imports after African swine fever case
Business

China bans German pork imports after African swine fever case

SHANGHAI (Reuters) - China banned pork imports from Germany on Saturday after it confirmed its first case of African swine fever last week, in a move set to hit German producers and push up global prices as China's meat supplies tighten. China's ban on imports from its third largest supplier comes as the world's top meat buyer deals with an unprecedented pork shortage after its own epidemic of the deadly hog disease. The ban on Germany, which has supplied about 14% of China's pork imports so far this year, will push up demand for meat from other major suppliers like the United States and Spain, boosting global prices.

Libya's Haftar committed to ending oil blockade, U.S. says
Business

Libya's Haftar committed to ending oil blockade, U.S. says

CAIRO (Reuters) - Libyan commander Khalifa Haftar has committed to ending a months-long blockade of oil facilities, the U.S.