Nike Sales Jump as It Works Through Inventory Glut
Nike had started increasing discounting last summer but worked more aggressively to clear out items in the fall quarter.
Photo:
David Paul Morris/Bloomberg News
Nike Inc.
NKE 3.64%
made progress working through the inventory glut that squeezed the sneaker maker last year, reporting a 14% jump in quarterly sales.
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The sportswear company said its inventory increased 16% in the quarter ended Feb. 28 compared with the same period a year ago. Inventories had swelled by more than 40% in each of the prior two quarters.
Higher markdowns once again hurt profit margins, though Nike’s quarterly earnings came in above Wall Street’s expectations. The company said net income in the quarter fell 11% to $1.24 billion.
Nike executives said last year that they thought the company was past its inventory peak. Nike had started increasing discounting last summer but worked more aggressively to clear out items in the fall quarter.
To deal with inventory woes Nike executives said in December that they were cutting orders from suppliers. The company also leaned on wholesale partners, a reversal from its long-term plans to focus on direct-to-consumer sales. Wholesale revenues increased 12% year over year.
Write to Inti Pacheco at [email protected]
Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
Appeared in the March 22, 2023, print edition as ‘Nike Posts Sales Rise, Helping Inventory.’
Nike had started increasing discounting last summer but worked more aggressively to clear out items in the fall quarter.
Photo:
David Paul Morris/Bloomberg News
Nike Inc.
NKE 3.64%
made progress working through the inventory glut that squeezed the sneaker maker last year, reporting a 14% jump in quarterly sales.
SHARE YOUR THOUGHTS
What is your outlook for Nike? Join the conversation below.
The sportswear company said its inventory increased 16% in the quarter ended Feb. 28 compared with the same period a year ago. Inventories had swelled by more than 40% in each of the prior two quarters.
Higher markdowns once again hurt profit margins, though Nike’s quarterly earnings came in above Wall Street’s expectations. The company said net income in the quarter fell 11% to $1.24 billion.
Nike executives said last year that they thought the company was past its inventory peak. Nike had started increasing discounting last summer but worked more aggressively to clear out items in the fall quarter.
To deal with inventory woes Nike executives said in December that they were cutting orders from suppliers. The company also leaned on wholesale partners, a reversal from its long-term plans to focus on direct-to-consumer sales. Wholesale revenues increased 12% year over year.
Write to Inti Pacheco at [email protected]
Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
Appeared in the March 22, 2023, print edition as ‘Nike Posts Sales Rise, Helping Inventory.’
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