Unable to keep outrunning the recession, sportswear behemoth Nike has shown the first impact of the global slowdown in its fourth-quarter sales. These fell by 2.3 per cent. Impairment charges pushed earnings below expectations, and margins slipped slightly from their lofty level. Even so, the numbers still looked surprisingly healthy for a company that sells premium goods to the mass market. But its "futures" growth - the value of pre-sold merchandise - is pointing to a sharper slowdown, and management has signalled there will be more margin pressure coming too.

Nike's great strength has come from cultivation of its brands, masterful logistics and smart cash flow management. Return on invested capital was nearly 25 per cent last year - quite an achievement for a company with net cash and heavy working capital requirements. Even as many of its suppliers and retailers suffer, Nike's relative dearth of hard assets and the ability to charge premium prices for its products have kept it insulated. The question is for how much longer?