Inventory levels a concern at Nike

The company plans to cut prices in some regions to clear through some stocks.

By Kim Peterson Jun 25, 2012 5:26PM
Image: Magnyfying glass (© Creatas/SuperStock)Nike (NKE) has seen an unexpected buildup in its inventories this year, which is worrying some investors as the company tries to unload those extra goods.

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.
13Comments
Jun 25, 2012 7:25PM
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Made in America. New Balance is American made by Americans !
Jun 26, 2012 7:36AM
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When NIKE started using child labor years ago, outsourcing,  paying kids pennies a day to make their expensive sneakers, I swore I would never buy another pair....I haven't....I hope the company goes out of business!
Jun 26, 2012 10:31AM
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Nike golf shoes are low quality. Wore two Nike golf shoes that didn't last through one summer before the soles  detatched. Bought FootJoy and on 3rd year and they still look like new.
Jun 25, 2012 6:58PM
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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.

Jun 26, 2012 9:28AM
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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.

Jun 26, 2012 10:51AM
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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.

Jun 25, 2012 8:52PM
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Along with the rest of my fellow Americans, I am too fat to buy exercise shoes anymore - long live Crocs...
Jun 26, 2012 10:27AM
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Dont bother trying to post anything here as they are calling everthing spam 
Jun 26, 2012 12:13PM
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Oh no!  Now they won't have enough to build University of Oregon's facilities or to give them money to buy their teams. 
Jun 26, 2012 1:05PM
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nike owner is evil and a psychopathic narcissist.
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