Nike Comeback Bid Is Threatened by Inventory Reset, Tariffs

Nike Inc.’s turnaround effort is hitting snags as the company tries to clear out old inventory while feeling the effects of a growing trade war.

Shares fell in pre-market trading Friday as the sportswear maker signaled further declines in revenue and profitability from an ongoing merchandise reset that the company says is necessary to renew growth. Nike also expects gross margin to decline sharply in the current quarter from a year earlier, in part due to US tariffs on products from China and Mexico.