NEW YORK (AP) — Nike sales and profits slumped in its fiscal first quarter as the sportswear giant wrestles with shoppers’ sluggish demand for new sneaker models and other products.
The lackluster results Tuesday came after Nike announced last month that its CEO, John Donahoe, is stepping down on Oct. 13. Company veteran Elliott Hill is coming out of retirement to head up the company.
Nike has been known for its innovation but in recent years, analysts have said that it has lost its focus on coming up with cool products.
The company posted net income of $1.05 billion, or 70 cents per share, in the quarter that ended Aug. 31. That compares with $1.45 billion, or 94 cents per share, in the year-ago period.
Sales fell 10% to $11.59 billion.
The results still topped Wall Street forecasts. Analysts were expecting earnings of 52 cents a share on sales of $11.64 billion, according to FactSet.
Shares of Nike Inc., which is based in Beaverton, Oregon, were down about 3% in after-hours trading following the earnings report. They are down 18% so far this year.
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