Nike Doesn't Do It

Nike Inc. (Beaverton, Ore.) announced that profits for its fiscal third quarter ending Feb. 28, 2001, would be lower than anticipated. However, it said it anticipated positive earnings growth for the full fiscal year.

Philip Knight, Nike chairman and ceo, blamed the desultory performance on weakness in U.S. footwear revenue. He also cited problems with the company's new supply software, resulting in product shortages and late deliveries.

“We believe that we have addressed the issues around this implementation,” he said, “and that over the long term, we will achieve significant financial and organizational benefit from our global supply chain initiative.”

Knight noted strong international business, and said the more-recent success of products such as NikeShox and Presto indicate a rebound in the company's U.S. footwear business. “We intend to build on this success,” he said, “by aggressively targeting growth in our share of the important, but under-served,mid-priced segment of the market.”