The company is undergoing a costly restructuring - cutting costs and 1,750 posts, or 5% of its workforce, in the biggest job reduction in its history.

Shares in Nike dropped 5% to $50.49 after the results were announced.

Nike reported that future orders for athletic footwear and apparel, scheduled to be delivered between June and November 2009, stood at $7.8bn, down 12% from the same period last year.

The Europe, Middle East and Africa division saw the greatest fall - of 24%, and US. future orders fell by 4%.

But the company said it had still seen appetite for its more expensive products. For example, one of its best-selling shoes from the Nike store online sold at $160.

"Even if the worst is behind us, we're taking an approach that's both prudent and opportunistic," Nike president Mark Parker said.