Nike Said It Will Raise Its Price Substantially In 2012.

The world's largest sportswear and sportswear manufacturers

Blair, chief financial officer of Nike, told analysts in a recent conference call: "we expect the unfavorable factors to continue. From 2012, we will substantially increase the price of a range of products." (DonBlair)

Nike expects higher production costs and greater pressure on profits this quarter.

This proves that the increase in production costs has hurt Nike Ju's profits, and Nike's profit margins will be under heavy pressure this year, OakBrook said.

Nike announced that the profit in the third quarter of February increased by 5.2% to $523 million, equivalent to $1.08 per share, higher than the 497 million US dollars in the same period last year or 1.01 US dollars per share, but still lower than analysts' average expected US $1.12 per share.

Last quarter revenue increased 7.3% to $5 billion 80 million, while Nike store sales increased by 13%.

The gross profit margin in the third quarter dropped by 1.1 percentage points to 45.8%. The main reason is that besides the increase of production cost, the increase of product air freight to satisfy consumers also makes profits lower.

Nike expects the gross profit margin in the quarter to be reduced by 3 percentage points over the same quarter last year, but the pressure on profit margins will decrease as prices begin to rise.

Sales growth of Nike in the third quarter was not evenly distributed, while sales in North America and China increased by 9% and 21% respectively, but 2% in Western Europe and 8% in Japan.