{"id":1665421,"date":"2022-09-29T19:50:47","date_gmt":"2022-09-29T23:50:47","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1665421"},"modified":"2022-09-29T19:51:31","modified_gmt":"2022-09-29T23:51:31","slug":"nike-skids-after-warning-on-squeeze-from-higher-discounts-stronger-dollar","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/nike-skids-after-warning-on-squeeze-from-higher-discounts-stronger-dollar\/","title":{"rendered":"Nike skids after warning on squeeze from higher discounts, stronger dollar"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">22<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fnike-skids-after-warning-on-squeeze-from-higher-discounts-stronger-dollar%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1665421&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>By Mehr Bedi<\/p>\n<p>(Reuters) -Nike Inc cautioned on Thursday that gross margins would remain under pressure through the year as the world\u2019s largest sportswear maker joined peers in warning of a blow from ramped up discounts and a rapidly strengthening dollar.<\/p>\n<div id=\"div-gpt-ad-1663871513696-art-1\">\n<\/div>\n<p>The company\u2019s shares, already one of the worst performing Dow components for the year, fell 10% in extended trading.<\/p>\n<p>\u201cWe\u2019re going to see substantial markdowns this year through the holiday season. But going into the calendar year 2023, I believe inventories will be much lower after the holiday sell through and then the post holiday sales,\u201d Morningstar analyst David Swartz said.<\/p>\n<p>Overall inventories surged 44% to $9.7 billion at the end of the first quarter at Nike, while it soared 65% in its biggest market of North America.<\/p>\n<p>Demand for Nike\u2019s brands including Jordan and Converse has slowed, analysts have said, as sneakerheads lose enthusiasm for discretionary products due to the cost-of-living crisis. <\/p>\n<p>Rival Under Armour, big-box retailer Target Corp and a host of other companies have also turned to heavy discounting after inventories ballooned in recent months.<\/p>\n<p>Nike expects full-year gross margins to decline between 200 and 250 basis points, anticipating the greatest fall in the second quarter.<\/p>\n<p>Meanwhile, the company, like other U.S. businesses with sprawling international operations, has grappled with a stronger dollar.<\/p>\n<p>\u201cHeadwinds from foreign exchange shifted significantly in the last 90 days as the trend of U.S. dollar strengthening has accelerated,\u201d Chief Financial Officer Matthew Friend said in an earnings call.<\/p>\n<p>The company, which makes over half its revenue from outside North America, doubled its estimates for a hit to annual revenue from the soaring dollar to $4 billion. <\/p>\n<p>The strengthening greenback also helped fuel Nike\u2019s 220 basis points decline in first-quarter gross margins to 44.3%. Analysts had expected a gross margin of 45.4%, according to IBES data from Refinitiv.  <\/p>\n<p>Nike\u2019s net income fell 20% to $1.47 billion, or 93 cents per share, in the three months ended Aug. 31.<\/p>\n<p> (Reporting by Mehr Bedi in Bengaluru; Editing by Sriraj Kalluvila)<\/p>\n<p><a href=\"https:\/\/www.oann.com\/business\/nike-margins-squeezed-by\/attachment\/file-photo-nike-shoes-are-seen-on-display-at-the\/\"><img decoding=\"async\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/09\/tagreuters.com2022binary_LYNXMPEI8S164-BASEIMAGE.jpg\" alt=\"tagreuters.com2022binary_LYNXMPEI8S164-BASEIMAGE\" \/><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Mehr Bedi (Reuters) -Nike Inc cautioned on Thursday that gross margins would remain under pressure through the year as the world\u2019s largest sportswear maker joined peers in warning of<\/p>\n","protected":false},"author":66,"featured_media":2315279,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1665421","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1665421","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/66"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1665421"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1665421\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2315279"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1665421"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1665421"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1665421"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}