Sometimes high-priced, hot-selling sneakers aren’t enough to win the game on Wall Street.
Shares of Nike dipped 1.2 percent Friday despite better-than-expected profits, which were boosted by brisk demand for sneakers priced as high as $225 a pair.
The world’s biggest athletic-goods manufacturer’s stock, which is up more than 50 percent this year, closed down Friday at $77.34.
That’s despite the fact that Nike’s profit for the three months ended Nov. 30 blew past analysts’ expectations, soaring 40 percent to $537 million.
Nike has been goosing margins as it adds more expensive sneakers to its product assortment, including the $225 Hypervenom soccer cleats and Flyknit running shoes, priced at $160 a pair.
The company said Nike brand sales were up in every product category and region. Demand for its Converse brand was especially strong in North America, the UK and China, Nike said.
Nevertheless, analysts on Friday fretted that big plans for advertising spending on next year’s Olympics in Russia and the World Cup soccer games in Brazil will pressure costs, putting a lid on near-term earnings.
Likewise, supply-chain snafus hampered sales in some emerging markets during the most recent quarter, and the company noted that unfavorable currency-exchange rates could weigh on earnings next year.
Nike, based in Beaverton, Ore., said revenue rose 8 percent to $6.43 billion.
Growth in China has slowed of late, but Nike CEO Mark Parker said he was “very encouraged” by revenue growth there of 8 percent, to $629 million.