Nike profits drop on North American weakness

NEW YORK: Nike reported a drop in North America again cut into

Net income for the quarter end ago period.

Revenues were unchanged

Sales rose in all regions except North America, the biggest, where a retail industry shakeout has led to heavy discounting among vendors.

Nike also cited the unfavorable exchange rate as a factor for the weak North American sales.

In June, the company unveiled a new global sales structure targeting at growth in the biggest cities and speeding the development time on new fashions and products in response to consumer demand.

The company has also ramped up direct selling to consumers through digital systems and agreed to sell a limited number of items on Amazon.

Nike forecast a low-single digit gain in revenues for the full year, with the recent weakening of the

Chief executive Mark Parker said he was “very bullish” that new product launches would ignite sales and optimistic about its direct selling initiatives.

Shares of Dow member Nike after-hours trading.