NEW YORK, March 22 — Shares of Nike tumbled yesterday after the sports giant signaled a tepid near-term revenue outlook even as it promised to wow consumers with new offerings in an Olympic year.

The sports giant, which has been criticised by some Wall Street analysts over a lack of hot new products in recent times, reported flat quarterly sales and profits that were slightly lower than the year-ago period, but which topped analysts expectations.

Shares initially rallied on the results, which came only hours after the German football team picked Nike over Adidas in a win highlighted by the CEO on a conference call.

But Nike stock went steeply negative after Chief Financial Officer Matthew Friend projected only one per cent revenues growth in the upcoming quarter, its fiscal fourth quarter.

Friend also forecast a revenue drop in the “low single digits” in the first half of the next fiscal year, in part reflecting “the subdued macro outlook around the world,” he said.

Profits in the quarter ending February 29 came in at US$1.2 billion, down five per cent from the year ago period. Revenues were US$12.4 billion, essentially level with the year-ago stretch.

The results were dented by about US$400 million in one-time severance costs after job cuts, said Friend, who cautioned that near-term performance would be negatively affected by “transition” impacts as it phases out some older items in favour of new offerings.

Following criticism from some analysts, Chief Executive John Donahoe emphasized recent senior appointments at the company as part of an effort to “sharpen our focus on sport.”

Donahoe promised “major advancements” in the coming month centreing on its “Air” footwear brand in football, basketball, track and other sports.

“We’re acting with urgency as we make the adjustments needed to win,” Donahoe said on a conference call with analysts as he touted Nike’s selection by German footballers over Adidas after a decades-long partnership with the German brand.

“Our ability to tell stories shown through to make the German team a global brand and make their athletes global heroes,” said Donahoe, who said the company was “deeply honoured and privileged” by the win in Germany.

Shares of Nike slumped 6.5 per cent in after-hours trading. — AFP