Nike de­clines most in seven months

The Pak Banker - - Company & Boss News -

NEW YORK: Nike Inc., the world's largest maker of ath­letic shoes, dropped the most in 21 months af­ter re­port­ing or­ders that fell short of some an­a­lysts' es­ti­mates, Bloomberg re­ported.

Nike fell $5.35, or 5.8 per­cent, to $86.95 at 4:04 p.m. in New York Stock Ex­change com­pos­ite trad­ing, the largest drop since March 5, 2009. The shares closed yes­ter­day be­fore the re­port at $92.30, the high­est price since its ini­tial pub­lic of­fer­ing in 1980.

Or­ders for the Nike brand for De­cem­ber to April rose 11 per­cent to $7.7 bil­lion, ex­clud­ing cur­rency fluc­tu­a­tions, from a year ago, the Beaver­ton, Ore­gon-based com­pany said in a state­ment yes­ter­day. That missed the 11.6 per­cent gain pro­jected by an av­er­age of five an­a­lysts sur­veyed by Bloomberg. Or­ders gained 13 per­cent from Septem­ber through Jan­uary. "A lot of peo­ple who love this stock hoped for some­thing bet­ter," said Chris Svezia, an an­a­lyst for Susque­hanna Fi­nan­cial Group in New York. "At a 52-week high, they ex­pected this com­pany to knock the cover off the ball." In­vestors are concerned that or­ders in China and emerg­ing mar­kets de­cel­er­ated from the pre­vi­ous pe­riod, Sam Poser, an an­a­lyst for Sterne, Agee & Leach Inc. in New York, said yes­ter­day in an in­ter­view on Bloomberg Tele­vi­sion.

Or­ders for China gained 14 per­cent, com­pared with an ad­vance of 23 per­cent in the prior pe­riod, while emerg­ing mar­kets in­creased 15 per­cent, down from a 24 per­cent. The growth in or­ders was af­fected by com­par­isons to last year when the World Cup drove pur­chases in those re­gions, Nike Chief Fi­nan­cial Of­fi­cer Don­ald Blair said yes­ter­day in a con­fer­ence call with an­a­lysts. Nike re­ported sec­ond-quar­ter net in­come in­creased 22 per­cent to $457 mil­lion, or 94 cents a share, in the pe­riod ended Nov. 30, from $375.4 mil­lion, or 77 cents a year ear­lier. -PB News

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