Nike Fiscal 1st-Quarter Earnings Fall 35%

Nike Inc. said its earnings fell 35% to $163.8 million, or 56 cents a diluted share, for its fiscal first quarter, on continued weak sales, especially in Asia. The results for the period ended Aug. 31 exceeded the average 48-cents-a-share estimate by analysts, according to First Call Corp. Revenue fell 9% to $2.5 billion. Nike added that advance orders for athletic footwear and apparel were down 15% from a year ago. Earnings results were bolstered by lower-than-expected spending levels in the first quarter, Chairman Philip Knight said, but he warned that spending could increase in the current quarter. Beaverton, Ore.-based Nike also said it will cut 300 more jobs in its Asia-Pacific operations, for a total reduction of 15% in the region. This is on top of the 1,600 job cuts companywide it announced earlier this year. Nike shares fell $2.44 to close at $33.75 on the NYSE. Its earnings were released after the markets closed.