NEW YORK - Global sports giant Nike on Tuesday said falling revenue in North America, especially for its subsidiary Converse, was responsible for a considerable drop in its quarterly net income.
In a statement Nike said it had experienced a 24% drop in its quarterly net income in comparison to the same period last year. Its net income sank to R12.67 billion while revenue hovered at $9.1bn for the quarter ending August 31, the company based in Beaverton, Oregon, said.
Sales of the Nike brand were up by 2% to $8.6bn - driven by growing turnover outside of the US, including China and Latin America.
Nike cited an increase in sportswear sales. But the 109-year-old Converse brand, which Nike purchased in 2003, saw a 16% plummet in its revenues to
$483m, caused by declines in North America. The sports giant also blamed a higher effective tax rate for the drop in the company's profits.