Inventory levels a concern at Nike
The company plans to cut prices in some regions to clear through some stocks.
The inventory number will be one of the most watched figures coming out of the company's earnings report Thursday. Nike has already said that inventories were especially high in Europe and China, and it will discount some products to clear through the stock.
The company's inventory levels have risen by at least 32% in each of the last four quarters, reports The Wall Street Journal. "Inventories have outpaced sales growth by the most during that period than any point the last 11 years," writes John Kell.
Analysts expect Nike to report $1.36 a share in profit on sales of $6.51 billion on Thursday.
Sometimes I wish they'd do a "retro" line of the style that was popular in 1982. The running shoe they sold that year was the most comfortable one I've ever worn; none of the newer, supposedly better styles even come close, nor have any of the other brands of running shoes out there, to the point that I've about given up on sneakers altogether.
I have bought Nike products for years and wouldn't buy another pair because their quality has become garbage. Within a short amount of time of purchasing them they become noisy. Every step is loud enough to turn heads when you walk past as they squeak. They will exchange them, but within a couple months the replacements get just as noisy and embarrassing to wear.
Those of you wishing ill upon Nike, shame on you. Nearly everyone manufactures overseas because Americans all think they deserve and are entitled to a 6-figure salary. You think Nikes are expensive now, the price would triple if the merchandise was made in America.
If you don't like their shoes, their labor practices (which are not out of the norm for the country they are manufacturing in), don't buy the product, but don't wish bankruptcy upon them. Think about all of the Americans working for the company, from corporate all the way down to retail sales at Niketown. If the company folds, that's a lot of people on our soil looking for work.
I have yet to have a Nike product fall apart or perform any other way than exactly how it was supposed to perform... and I am the type of athlete they design for, someone who will use and care for the product as intended. Yeah, I just do it, and the products are right there with me.
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The stock price falls 11% in midday trading after the struggling company gives a weak forecast.
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