• Loading stock data...
Sunday, August 31, 2025
The biggest names in sports media. All in one room. Get your ticket now!

Nike Shares Fall As Inventory Levels Skyrocket

  • Nike reported a 4% increase in first-quarter revenue to $12.69 billion.
  • The company’s inventory levels increased 44% from last year.
Kirby Lee-USA TODAY Sports

Nike reported a 4% increase in first-quarter revenue to $12.69 billion, beating analysts’ estimates of $12.27 billion.

But Nike’s net income dropped 22% year-over-year to $1.5 billion, and the company’s stock was down more than 12% as of market close Friday. Before the report, shares had declined around 40% on the year. 

Nike CFO Matthew Friend said the quick improvement of transit shipping time, which was previously affected by supply chain issues, led to increased inventories.

  • The Swoosh reported a 44% year-over-year jump in inventories to $9.7 billion.
  • Compared to one year ago, inventories in North America are up 65%.
  • Inventory in transit rose 85% since last year.

“We are taking decisive action to clear excess inventory,” Friend said, adding that the increased inventory levels are due in part to late arrivals.

Nike will mark down more goods, especially apparel, to reduce inventory and work with its wholesale partners. In the second quarter, Nike expects inventory levels to normalize and revenue to increase 10%.

North American sales increased 13% to $5.5 billion, sales in Greater China declined 16% to around $1.7 billion, sales in Europe, the Middle East, and Africa increased 1% to $3.3 billion, and sales in Asia Pacific and Latin America increased 5% to $1.5 billion.

New Deal

On Friday, Nike announced JD Sports and Zalando as the first European companies to be part of its Connected Partnership loyalty program, which launched in November with Dick’s Sporting Goods in the U.S.

Linkedin
Whatsapp
Copy Link
Link Copied
Link Copied

What to Read

Ohio State Buckeyes wide receiver Jeremiah Smith (4) celebrates with offensive lineman Donovan Jackson (74) after a touchdown catch against Notre Dame Fighting Irish in the first quarter during the College Football Playoff National Championship at Mercedes-Benz Stadium in Atlanta on January 20, 2025.

The Most Expensive Roster Year in College Football History

The House settlement created revenue-sharing—and a big NIL loophole.
Cooper Lutkenhaus

Running Prodigy Ditches High School and College for Nike at 16

Cooper Lutkenhaus is a contender at next month’s track world championships.

‘You’re Going to Get Beat Up’: The Liberty’s All-Male Practice Squad

A select group suits up weekly to take on the defending champs.

The Honey Deuce Effect: How Tennis Perfected the Signature Cocktail

Sold every 1.5 seconds, they total more than $12 million in sales.

Featured Today

Dec 21, 2024; Austin, Texas, USA; Texas Longhorns quarterback Arch Manning (16) warms up as the Texas Longhorns prepare to play the Clemson Tigers in the first round of the College Football Playoffs at Darrell K Royal Texas Memorial Stadium.

Schools Are Hesitant to Allow PE Into Their Athletic Departments

Regardless of budget, schools don’t believe the risk is worth the reward.
Oct 2, 2024; Rosemont, IL, USA; Big Ten commissioner Tony Petitti speaks with the media during the 2024 Big Ten Women’s Basketball media day at Donald E. Stephens Convention Center.
August 22, 2025

‘Not Ready to Jump In’: Power 4 Commissioners Aren’t Sold on PE

Top leaders in college sports have yet to see a satisfactory proposal.
Nov 23, 2024; Minneapolis, Minnesota, USA; Penn State Nittany Lions head coach James Franklin looks at quarterback Drew Allar (15) during the first quarter against the Minnesota Golden Gophers at Huntington Bank Stadium.
August 22, 2025

Private Equity Enters College Sports—Without the Equity

As college football starts, lending agreements have become PE’s best way in.
Sep 8, 2024; East Rutherford, New Jersey, USA; New York Giants running back Eric Gray (20) returns a kickoff against the Minnesota Vikings during the first half at MetLife Stadium.
August 18, 2025

‘Fauxbacks’ Throw Back to a Retro Uniform That Never Existed

Many throwback jerseys are brand-new designs or “Franken-Unis.”
Jonathan Mariner

Former MLB CFO Jumps to PE, Says Teams Are Undervalued

Mariner worked in Major League Baseball for 24 years.
March 20, 2025

Nike Struggles Continue, but Signs of Turnaround Appear

The embattled company beats tepid expectations in both revenue and earnings.
James Harden
April 24, 2025

Adidas Posts Big Profits in First Quarter Without Yeezy

Profits and sales are up after selling off remaining Yeezys last year.
Sponsored

Gareth Bale on MLS vs EPL, Retirement & Buying Cardiff City

Gareth Bale shares his post-soccer business playbook.
Oracle Park
March 18, 2025

S.F. Giants Selling Stake to Private Equity to Pay for Facility Upgrades

The team said the cash would not be used to grow payroll.
Aug 11, 2024; Paris, France; Medals are carried out on Louis Vuitton trays after the women's volleyball gold medal match during the Paris 2024 Olympic Summer Games at South Paris Arena
February 16, 2025

LVMH’s New Push: World’s Most Powerful Luxury Group Is Coming for Sports

LVMH is making long-term deals—and they’re not done.
February 14, 2025

DraftKings Turns First Full-Year Profit, Stock Up 47% in 2025

The company’s sports betting business continues to grow despite headwinds.
Billie Jean King
February 13, 2025

Billie Jean King: ‘Billionaires, Not Millionaires’ Are Fueling Women’s Sports Boom

Billie Jean King wants more women involved in team ownership, too.