Nike Inc. was affected by higher costs worldwide and had lower-than-expected profits in its fourth quarter results released last week, leading to a decline in its share price.
Although the company’s sales were stable, its profits were hit by inflation, leading to a 3 percent decrease in its share price, Yahoo Finance reported.
Gross margins fell 1.4 percent to 43.6 percent in the quarter that ended on May 31, down from 45 percent in the same period last year. Its revenue was more than $12 billion.
In a press release, the company said the decline was “primarily due to higher product input costs and elevated freight and logistics costs, higher markdowns and continued unfavorable changes in net foreign currency exchange rates—partially offset by strategic pricing actions.”…