Nike reports mixed quarterly results and sales declines

Nike reported a 3% revenue increase in North America for the most recent quarter, driven by gains in footwear and restored ties with some wholesale partners. The same report showed a 12% sales decline in China and continued weakness at the Converse brand. Market share losses in running shoes to competing labels were also noted.

The company reduced the level of detail provided in its financial results, including a breakdown of sales by gender. An equity research note from BNP Paribas stated that the reduced disclosure on women’s sales raised questions about progress in that segment.

Nike also faced criticism over a marketing campaign released before the Boston Marathon and over limited product availability in U.S. stores ahead of the World Cup.

Company officials issued a cautious forecast for the current quarter, citing pressure on consumer spending. Nike shares declined following the earnings release and remain down roughly 75% from their peak five years earlier. The company generates about $46 billion in annual revenue and has been working to reverse earlier decisions that reduced emphasis on wholesale accounts and performance products.