Nike announces a 5% increase in net profits for the last year, but that still wasn’t enough for investors who had believed the sportswear firm would perform better.
Earnings were up 7%, but with profits increasing slower than profits, the companies margins have become slimmer over the past year.
Nike issued a profit warning for the next year, citing higher manufacturing and shipping costs, as well as a rising tax burden, and explained that they were expecting to have to implement substantial price increases across their entire range.
Traders responded to the warning and lowered the cost of buying shares in the firm, who are currently the biggest of their type in the world.
Nike can point to one positive, which is an 11% rise in orders for the next season, although this wasn’t enough to cheer investors, as Nike shares closed down 5.2%, at $81.