US downturn hits shares in Nike

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Flat demand in its home market has hit shares in Nike, despite the world's largest sports shoe maker reporting strong sales in the rest of the world.

Nike reported three-month net income of $490.5m (Â£248.7m), up 12% from the same period in 2007, but its shares fell 4.5% in after-hours trading.

It said advance orders in the US were flat up to November.

Nike's results were helped by an improved tax rate and a $32m gain from the sale of Nike Bauer Hockey.

Its sales in Asia were also strong, with the Beijing Olympics presenting opportunities for Nike.

"Everyone knows China is good," said John Shanley, an analyst at Susquehanna Financial Group.

"But there are large segments of their global presence that investors have a great deal of concern that they may not snap back anytime soon."

Nike's chief executive Mark Parker described the US economic situation as "challenging" but stressed that "Nike is a growth company".