Nike's quarterly sales and profits are slumping as the company struggles with sluggish customer demand for its products

NEW YORK (AP) — Nike's sales and profits slumped in its first fiscal quarter as the sportswear giant struggled with sluggish shopper demand for new sneaker models and other products.

Tuesday's lackluster results came after Nike announced last month that its CEO, John Donahoe, would step down on Oct. 13. Company veteran Elliott Hill is coming out of retirement to take the helm of the company.

“A comeback of this magnitude takes time, but we are seeing early victories – from building momentum in key sports to accelerating our pace of novelty and innovation,” Matthew Friend, Nike's executive vice president and chief financial officer, said in a statement. “Our teams are. “We are energized as Elliott Hill returns to lead Nike’s next phase of growth.”

Friend told analysts on Tuesday that in light of the CEO change and with three quarters remaining in the fiscal year, Nike has withdrawn its full-year financial guidance and plans to provide quarterly guidance for the remainder of the fiscal year. In addition, the investor meeting scheduled for November 19th has been postponed.

Nike is known for its innovation, but in recent years analysts have said the company has lost its focus on creating cool products.

Neil Saunders, managing director of GlobalData Retail, said some of the decline in sales was due to a weaker consumer economy, with shoppers buying fewer sneakers and not choosing clothing as they once did.

“Nike has done itself a disservice by lacking focus and momentum in a market that requires far more effort and effort to maintain sales,” he said. “There is a general feeling that Nike has lost its edge and its power. “Both its innovation and the quality of its storytelling have faded.”

Saunders noted that at the same time, smaller competing brands have moved into Nike's territory and successfully connected with consumers in ways that Nike could not.

Nike had net income of $1.05 billion, or 70 cents per share, in the quarter ended Aug. 31. In the same period last year it was $1.45 billion or 94 cents per share.

Sales fell 10% to $11.59 billion.

Analysts expected profit of 52 cents per share on revenue of $11.64 billion, according to FactSet.

Shares of Beaverton, Oregon-based Nike Inc. fell 5% in after-hours trading following the release of its earnings report. They are down 18% so far this year.