Nike has reported an 8% drop in fourth-quarter profit to $549 million, with higher costs hitting margins.

The sportswear and footwear brand claims it faced increased costs for labour and materials, with marketing expenses rising around Euro 2012 and the London Olympics.

Although the company’s revenues rose 12% to $6.47 billion during the three-month period, Nike shares fell 10% in after-hours trading on June 27.

CEO Mark Parker said: "We will see continued uncertainty in the global economy and commodities and labour costs will continue to fluctuate.

"Currency pressures increased, especially in Europe and the emerging markets, and China's economy is expected to grow more slowly than we've seen over the past five years."

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