Nike released financial results for the first quarter of its 2018 fiscal year on Tuesday, providing a look at the company's recent performance up to Aug. 31, 2017. While revenues for the sportswear powerhouse were flat at $9.1 billion compared to the last year, it took a big blow in net income.

Per its first quarter results, net income dropped 24 percent to $950 million, a decrease the company attributes to higher taxes and losses from foreign exchange rates. According to CFO Andy Campion, the effective tax rate was 11.4 percent for the quarter compared to 2.5 percent in the year prior due to "a one-time benefit related to the resolution with the IRS of a foreign tax credit matter in the prior year."

While the drop in profit is significant, the Portland Business Journal reports that Nike's overall results were slightly better than what Wall St. analysts were expecting for Q1 2018.

The company reported losses in sales of 3 percent in North America, its most important market. Also troubling for Nike in North America is the rise of Adidas, which just overtook Nike-owned Jordan Brand to become the No. 2 sneaker brand in the region.