Shares of Nike ( NKE) declined Thursday after the firm said it expects footwear orders from its largest customer to fall "significantly" in the second half of the year.

In a filing with the Securities and Exchange Commission, Nike said advance orders from Foot Locker ( Z) for the September through November period decreased sharply compared with the same period last year.

Nike, while off its earlier lows, was down 2%, or $1.09, to $43.16.

Foot Locker, which accounted for almost 11% of Nike's global net revenues in fiscal 2002, said it is reducing its emphasis on higher priced, premium footwear to focus more on moderately priced offerings.

Despite the reduction in orders from Foot Locker, total U.S. orders for the three-month period are down just 2.3% compared to the prior year while worldwide future orders are up 3%, Nike said.

The impact of lower orders from Foot Locker was first revealed when Nike released earnings on June 27, but the company said additional changes to November orders has reduced the overall growth of worldwide advance orders for June to November by about 30 basis points to 6.3%.

"Although we expect Foot Locker to continue to be an important retail partner for Nike, second half U.S. footwear orders from this customer will likely be significantly below the prior year," the firm said in the filing. "We are aggressively pursuing incremental sales across our business as we work to offset these declines and achieve our worldwide revenue growth goals for the year."

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