Nike expects its sales of shoes to stay down

WASHINGTON (Dow Jones/AP) -- Nike Inc. said it expects that its U.S. shoe sales will remain below earlier levels for the rest of the year because of its dispute with Foot Locker Inc., according to its annual report filed with the Securities and Exchange Commission.
Foot Locker, Nike's largest U.S. customer, announced early last year it was cutting its Nike orders to protest Nike restrictions on shoe prices and selection.
Nike responded by slashing its planned 2003 shipments to Foot Locker by $400 million, or 40 percent of the previous year's level, withholding some of the most popular Nike shoes.
Nike also said it expects demand for golf products in the United States to remain weak because of the slow U.S. economy.