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Adds details on costs, shares

Sept 29 (Reuters)Nike Inc NKE.N reported a decline in its quarterly profit on Thursday, hurt by higher costs and a stronger dollar.

The company’s shares, one of the worst performing Dow components so far this year, fell 2.3% in extended trading.

Elevated freight costs due to a global supply chain crunch are weighing on the company’s bottom line although it expects these supply snags to ease in the coming months.

Nike said costs rose 10% to $3.9 billion in the first quarter.

Major U.S. multinationals, including Microsoft Corp MSFT.O and Coca-Cola , have warned of a knock from the strength of the U.S. currency.

Nike had said it expects foreign exchange headwinds of about 400 basis points to weigh on its full-year revenue outlook.

The company’s net income fell to $1.47 billion, or 93 cents per share, in the first quarter ended August 31, from $1.87 billion, or $1.16 per share, a year earlier.

(Reporting by Mehr Bedi in Bengaluru; Editing by Sriraj Kalluvila)


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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