Nike's Inventory Management Reports Success Amidst Industry Challenges
👟 Nike's Inventory Management Reports Success Amidst Industry Challenges.
Nike's inventory units have decreased significantly, with a 10% year-over-year drop in inventory value, according to company executives. The sportswear giant's CFO, Matt Friend, expressed confidence in their current inventory levels compared to retail sales and praised the inventory management of retail partners like Dick's Sporting Goods. Nike has managed to align its inventory with demand after facing challenges last year when inventories surged by 44%, reflecting the impact of consumers and retailers reducing purchases. In contrast, Under Armour has seen inventory growth and a decline in gross margin.
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Nike's shares tumbled over 10% after the company revised its revenue outlook for the fiscal year, anticipating just 1% growth instead of mid-single-digit growth, citing challenges in Greater China and EMEA, digital traffic softness, and a stronger U.S. dollar.