UPDATED 1:55 p.m. Beaverton-area sportswear giant Nike (NYSE: NKE) saw its stock price tumble nearly 10 percent this morning after quarterly earnings missed analysts' expectations and the company's struggles with costs spooked investors.
The stock of Oregon's largest publicly traded company hovered around $77 all morning on the New York Stock Exchange, a drop of more than $8, or 9.5 percent, since its close Thursday at $85.41. UPDATE: It closed today at $77.59, down $7.82, or 9 percent.
As The Oregonian reported yesterday, the company announced a 7 percent increase in profit, to $523 million, or $1.08 a diluted share, during its fiscal third quarter. But 14 analysts polled by Thomson Reuters were expecting $1.11 a share in the three-month period ended Feb. 28.
Revenue of $5.1 billion was up 7 percent over the previous year. But Nike doesn't miss analyst expectations often. Bloomberg said it was the company's first miss in 19 quarters.
The company also warned yet again that it's struggling to contain higher labor, cotton and transportation costs. The company said it planned significant price increases across a wide range of shoes and clothing styles, according to MarketWatch.
According to said The Wall Street Journal, Nike's sales in Japan in the latest quarter were down 16%, excluding currency changes, even before last week's earthquake and tsunami. All of its employees there were accounted for and safe, the company said.
Japan had been a "challenging" market even before the tragedy, Nike said, and it expects the disaster will have a negative impact on both its revenue and profit in the country. Executives said, however, said it is still too early to determine the extent of that effect.
For more on yesterday's earnings, read Allan Brettman's report. Also, read about Portland-based Naturally Advanced Technologies' deal to supply Hanesbrands Inc. with a cotton alternative. NAT is run by Ken Barker, a former Adidas America executive.
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