Nike Posts 29% Profit Rise, Warns of Weakness

Nike Inc. reported a 29% increase in profit for its fiscal fourth quarter to $163 million, or 69 cents a share, a penny better than forecasts. But it warned that rising expenses, excess inventory and weak foreign currencies would weigh on results in the next two quarters.

The world’s No. 1 athletic shoe maker said sales rose 8.7% to $2.5 billion. The company said positive results in the U.S. apparel business helped profit growth in the latest quarter. Analysts said Nike also benefited from lower marketing costs.

For the first quarter, Nike now expects earnings to come in below the 77 cents posted in the year-ago quarter, as well as a decline in sales. Analysts had expected earnings of 77 cents for the quarter. Nike shares dropped 68 cents to close at $41.98 on the NYSE.