Nike Inc. (NYSE:NKE) shares eased in premarket trade after its first quarter revenue posted on Tuesday failed to impress Wall Street.
The sneakers giant said it recorded earnings of US$950mln, or 57 US cents a share, in the quarter, compared with US$1.25bn, or 73 US cents a share, a year ago.
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It blamed the fall in earnings to gross-margin declines, a higher tax rate, and higher other expenses, which were offset partly by lower selling and administrative expenses and a lower average share count.
Revenue during the period reached US$9.07bn, flat against the previous year.
The market was expecting earnings of 48 US cents a share on sales of US$9.09bn.
In premarket trade, Nike was down 3.17% at US$52.00.