{"id":1665880,"date":"2022-09-30T06:56:17","date_gmt":"2022-09-30T10:56:17","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1665880"},"modified":"2022-09-30T06:56:37","modified_gmt":"2022-09-30T10:56:37","slug":"nike-slumps-on-margin-pressure-from-excess-inventory-stronger-dollar","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/nike-slumps-on-margin-pressure-from-excess-inventory-stronger-dollar\/","title":{"rendered":"Nike slumps on margin pressure from excess inventory, 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\">20<\/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-slumps-on-margin-pressure-from-excess-inventory-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=1665880&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>(Reuters) \u2013     Shares of Nike Inc plunged 9% in premarket trading on Friday after the world\u2019s largest sportswear maker warned of tighter margins as it deals with the relentless strengthening of the dollar and markdowns to clear ballooning inventory.    <\/p>\n<p>Nike expects full-year gross margin to fall 200-250 basis points after its total inventories surged 44% to $9.7 billion at the end of the first quarter.<\/p>\n<div id=\"div-gpt-ad-1663871513696-art-1\">\n<\/div>\n<p>The company, which gets more than 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>Shares fell to $86.40. If losses hold through the session, it would be Nike\u2019s biggest one-day percentage fall since March 2020 and shave off about $13.5 billion in market value.<\/p>\n<p>\u201cThe key debate is set to be around the likely pressure on gross margins for other companies as the industry follows the market leader\u2019s stepped up mark-down efforts and helps mop-up excess inventories,\u201d Jefferies analysts wrote in a note.<\/p>\n<p>Shares of smaller rival Under Armour slipped 7.1%, while those of German peers Adidas and Puma skid 4.0% and 5.2%, respectively.<\/p>\n<p>Slowing demand for Nike brands including Jordan and Converse  is the latest evidence of consumers paring back on discretionary spending as they battle decades high inflation.<\/p>\n<p>Some analysts, however, view Nike\u2019s inventory issues as a near-term problem, and are reiterating their bullish view on its shares.<\/p>\n<p>\u201cNike\u2019s stock pullback represents a solid opportunity to own the highest quality name in the group,\u201d Credit Suisse wrote in a note.<\/p>\n<p>The average rating of 36 brokerages covering the stock is \u201cbuy\u201d and the median price target on the company is $115, down from $130 a month ago.<\/p>\n<p> (Reporting by Medha Singh in Bengaluru; Editing by Anil D\u2019Silva)<\/p>\n<p><a href=\"https:\/\/www.oann.com\/uncategorized\/nike-slumps-on-margin\/attachment\/black-friday-sales-begin-at-the-outlet-shoppes-of-the\/\"><img decoding=\"async\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/09\/tagreuters.com2022binary_LYNXMPEI8T0H5-BASEIMAGE.jpg\" alt=\"tagreuters.com2022binary_LYNXMPEI8T0H5-BASEIMAGE\" \/><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Reuters) \u2013 Shares of Nike Inc plunged 9% in premarket trading on Friday after the world\u2019s largest sportswear maker warned of tighter margins as it deals with the relentless strengthening<\/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-1665880","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\/1665880","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=1665880"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1665880\/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=1665880"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1665880"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1665880"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}