AP News

News Summary: Nike 1st-quarter net income falls

THE NEWS: Nike said Thursday that its fiscal first-quarter net income fell 12 percent as higher sales of its clothing and footwear brands was offset by higher costs and increased ad spending. Revenue rose 10 percent to $6.67 billion.

THE CONTEXT: Nike, like other consumer products makers, is facing high costs for materials and labor, as well as an uncertain economy in Europe and a slowdown in China. The company, based in Beaverton, Ore., has raised prices and cut costs in response.

WHAT'S NEXT: Futures orders — those scheduled for delivery between September 2012 and January 2013 — rose 6 percent.

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