Nike reports decline in profits

Nike Inc has reported a 10% decline in first-quarter profits to $510.5m (£277.9m) despite a 17% increase in revenue. It has attributed the decline to exchange rates and a one-off tax benefit in the same period last year.

The sportswear giant says revenue has grown to $5.4bn (£2.9bn) over the period ending August 31, and it adds that worldwide future orders from September to January are up by 10% compared to the same period last year.

It says it saw revenue growth across the US, Europe, Asia Pacific and the Americas. Revenue grew by 20% in Europe to $1.8bn (£0.98bn) with strong sales of footwear up by 24%. Meanwhile, revenue grew by 8% in the US. Asia Pacific recorded the strong growth, increasing revenue by 36% to $860m (£468m) with footwear sales up by 37% to $454m (£454m).

Mike Parker, president and chief executive of Nike, says: “Our relentless focus on product innovation and premium consumer experiences generated balanced growth across every region and market share gains in key categories.”

He adds that the brand is “able to connect” with consumers, but it also running a “strong and smart business” for shareholders.