By Sabela Ojea


Nike reported lower revenue in the latest quarter after seeing a significant drop in sales in its key footwear business in North America.

Shares fell 5.5%, to $89.00, in post-market trading. The stock has declined 14% since the beginning of the year.

The sneaker and apparel company on Thursday posted a net profit for the three months ended May 31 of $1.5 billion, or 99 cents a share, compared with $1.03 billion, or 66 cents a share, for the same period a year earlier. Analysts polled by FactSet had forecast earnings per share of 86 cents.

Revenue fell 1.7%, to $12.61 billion, missing analysts expectations of $12.86 billion. Direct revenue dropped 8%, to $5.1 billion, while wholesale revenue rose 5%, to $7.1 billion.

The company said that footwear sales in North America dropped 6%, to $3.59 billion, with sales declining 1% in the market as a whole.

"While we are encouraged by our progress, our fourth quarter results highlighted challenges that have led us to update our fiscal 2025 outlook," Finance Chief Matthew Friend said.

The results come as Nike executives acknowledge they lost ground in the critical running category and say they are doubling efforts to regain a stronger grasp of the market.

"We are taking actions to reposition Nike to be more competitive, and to drive sustainable, profitable long-term growth," Friend said.

Overall, Nike has been dealing with strong competition from rival brands and concerns from customers about its ability to deliver innovative products. In recent years it also dealt with inflated inventories, which has resulted in deep discounts on items like apparel and footwear that have hurt profits.


Write to Sabela Ojea at sabela.ojea@wsj.com


(END) Dow Jones Newswires

06-27-24 1653ET