Checkout
Nike’s Inventory Glut Sends Stock Down the Most in 20 Years
- Apparel maker facing ‘intense margin pressure,’ analyst says
- Gross margin misses estimates on markdowns, freight costs
This article is for subscribers only.
Nike Inc. shares tumbled the most in more than two decades after a glut of unwanted merchandise eroded the sportswear giant’s profitability.
North American inventories surged 65% in the fiscal first quarter ended Aug. 31, and resulting markdowns caused gross margin to miss Wall Street’s expectations. The retailer also cited higher freight costs and foreign-exchange effects in its earnings report, released late Thursday, and downgraded its outlook for the full year.