Nike Inc. profit dips in second-quarter on soft sales but beats expectations

Nike Inc. Q2 profit dips 1 percent

PORTLAND, Ore. — Nike Inc. may have its mind on Tiger Woods, but the economy is what’s making its earnings and sales fall.

The world’s largest athletic and apparel reported Thursday that its second-quarter profit fell 1 percent to $375.4 million, or 76 cents per share, as sales for its products remained sluggish around the globe. That’s down from $391 million, or 80 cents per share, earned in the same quarter last year.

Revenue fell 8 percent to $4.4 billion.

Analysts polled by Thomson Reuters expected the company to earn 71 cents per share for the quarter on revenue of $4.4 billion.

Nike’s sales have sagged as consumers around the globe cut their spending. But a lower tax rate, tight inventories and other cost reductions helped Beaverton, Ore.-based Nike deliver a solid profit for the quarter that ended Nov. 30.

And orders for goods to be delivered in the coming season grew 4 percent — benefiting from the weaker dollar and with its largest growth in Western Europe, China and emerging markets — a good sign company as it moves forward in a tough economy.

“Our laser-sharp focus across our portfolio of brands, businesses, categories and geographies gives us the flexibility we need in this economy to gain share, lead the industry, and leverage the power of global sports,” Nike CEO Mark Parker said in a statement.

Shares of Nike rose $1.36, or 2.2 percent, to $64.61 in after-hours trading Thursday after closing down 80 cents at $63.25.