Nike shares hit by poor sales forecast
Nike shares fell as much as 7% in after-hours trading after it released a weaker-than-expected growth forecast.
The world’s largest sportwear maker’s sales were hit after releasing the information about its global sales in last quartal. However Nike is forseeing a growth by high single unit before the end of May,2016.
That is lower than analysts have been estimated ( growth of 10-15%).
Still Nike is keeping leader position due primarily to its sports shoes sales. Only in North America in first three months of 2016 rise of 13% has been recorded.
For these three months, untill March Nike posted a profit of $950m.
Oversales eroded primarily by the impact of strong US dollar and Nike’s expanded e-commerce offerings. These e-commerce offerings are usually on power over the Lunar New Year period.
To help boost sales, Nike is developing a line of new technology-infused products including electronic running shoes that can lace themselves.