Nike’s profits fell 28% in the quarter, from $1.4 billion to $1.0 billion.
- Revenues rose 5% to $12.8 billion.
- Profit margins fell due to higher product input costs, elevated freight and logistics costs, and higher markdowns.
- Nike has been undertaking sales over the last year to discount underselling merchandise.
- Chief Executive John Donahoe told analysts the action would situate the company for greater profitability in the future.
- Shares of Nike tumbled 4.2 percent to $108.65 in after-hours trading.