• Loading stock data...
Saturday, July 20, 2024
Join us this September for Tuned In Request to Attend

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

The Road to the Return of ‘EA Sports College Football’

This summer, the biggest development in college sports is virtual.
An artistic rendering of the new proposed Everton stadium in Liverpool.

Déjà Vu: Everton Loses Takeover Bid From U.S. Investor

The Premier League club is back on the hunt for a new owner.

Odell Beckham Jr. and Nike Claim Victory in Jury Ruling That Hands Both $0

The two sides were suing over alleged contract breaches, including OBJ’s gloves.

A ‘Seismic Shift’ for Women’s Sports: WNBA Lands $2.2 Billion Rights Deal

ESPN, Amazon, and NBC will pay the WNBA $200 million annually.
podcast thumbnail mobile
Front Office Sports Today

‘EA Sports College Football 25’: It’s More Than a Game

0:00

Featured Today

Jan 7, 2024; Nashville, Tennessee, USA; Jacksonville Jaguars wide receiver Calvin Ridley (0) reacts after scoring a touchdown against the Tennessee Titans during the first half at Nissan Stadium.
July 14, 2024

Without Hard-Line Bans, Pro Athletes and Personnel Will Keep Betting on Sports

Penalties often aren’t stringent or consistent enough to deter banned behavior.
Oct 2, 2021; Miami Gardens, FL, USA; NFL commissioner Roger Goddell speaks during the Don Shula Celebration of Life at Hard Rock Stadium.
July 13, 2024

The NFL Is Confident It Can Overturn the Sunday Ticket Verdict

The league may have good reason to believe it can win.
July 8, 2024

NFLPA Report Cards Have Become the ‘Talk of the Locker Room’ Across..

NFLPA report cards have become the ‘talk of the locker room.’
Oct 27, 2023; Sacramento, California, USA; A general of the Sacramento Kings logo on the court before the game against the Golden State Warriors at Golden 1 Center.

How Sports Went From Private Equity Punchline to Coveted Asset Class

Once an industry punchline, sports are now a coveted asset class.
DraftKings
February 16, 2024

DraftKings Trends Toward the Black, Buys Lottery App

The sports gambling giant continues to narrow its losses.
April 2, 2024

Silver Lake to Take Endeavor Private, Ending Tough Stock Market Run

Private equity giant Silver Lake is set to acquire the remaining shares it didn’t already own.
Sponsored

TopSpin 2K25 Brings the Legends of Tennis to Your Living Room

2K sports is reviving a classic with TopSpin 2K25.
Exterior of Nike Company Store
February 16, 2024

Nike to Lay Off 2% of Its Workforce in Cost-Savings Effort

The sportswear giant hinted at staff cuts in a December earnings call.
February 7, 2024

ESPN DTC to Debut by Fall 2025, but Streaming Alliance Hastens Market Entry

Date set for stand-alone version of network, but new joint venture will beat that by a year.
January 22, 2024

They Make Sports Balls—and They Could Be Worth Almost $9 Billion

Amer Sports looks to raise as much as $1.8 billion in the public markets.
A view of a FanDuel sportsbook location.
January 18, 2024

FanDuel Strengthens U.S. Dominance Ahead of NYSE Debut

Flutter posts strong financial results as NYSE shares are set to debut Jan. 29.