Nike misses estimates for quarterly revenue, shares fall

FILE PHOTO: Nike shoes are seen displayed at a sporting goods store in New York City, New York, U.S., May 14, 2019. REUTERS/Mike Segar/File Photo

(Reuters) – Nike Inc missed estimates for quarterly revenue on Thursday, signaling demand for its sports shoes and apparel was slowing.

Nike’s shares, which are down about 9% from their record high hit in August, fell 3% in extended trading.

Months long factory closures in Vietnam, where about half of all Nike footwear is manufactured, have piled more pressure on global supply chains, which are already reeling under the impact of the pandemic, with some analysts predicting that Nike will be short of products during the crucial holiday shopping season.

The company said revenue rose to $12.25 billion from $10.59 billion in the first quarter ended Aug. 31, while analysts on average had expected $12.46 billion, according to IBES data from Refinitiv.

Nike’s net income rose 23% to $1.87 billion, or $1.16 per share, in the first quarter.

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