Nike earned $97 million, as opposed to $145.3 million during the same period the year before. Share dividends were 35 cents and 52 cents respectively.

"This in not a particularly fun hour for me," Nike Chief Executive Officer Philip Knight said last week during a conference call with analysts. "My immediate reaction is ‘This is what we get for $400 million?’ However, he insisted that the problem would be fixed and that the massive savings promised by the system would be realised within the next six to nine months.

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