Nike's profits fell 33 per cent in the third quarter of 2000 due to weakness in its US footwear market and problems with software that caused the company to make about 5 million pairs of shoes without customer orders.
Nike said it earned $97 million, compared with earnings of $145.3 million in the period in 1999.
"Although we are disappointed with the weakness of our US footwear revenues, we continue to be very pleased by the strength of our international businesses, which delivered 17 per cent constant dollar revenue growth during the quarter," Nike chairman Mr Phil Knight said in a statement.
"In a review of his own performance, Mr Knight said he did not give himself "high marks."
Nike said third-quarter revenue was $2.17 billion, compared with $2.16 billion in the year-earlier period. US revenue fell 6 per cent to $1.1 billion, with footwear revenue tumbling 15 per cent to $734 million.
For the spring selling season, Nike chief financial officer Mr Donald Blair estimated Nike will produce 5 million pairs of footwear in excess of orders as a result of the software problems in a new supply system. He said that represents about $90 million worth of inventory.