Sep 30, 2022
Nike feels squeeze from strong dollar and discounts
Nike has warned that its profits will continue to be squeezed by the strong dollar and discounts aimed at cutting its stockpile of goods. The sportswear giant, which makes over half of its revenue outside North America, doubled how much it thinks the soaring dollar will hit its annual revenue to $4bn. Meanwhile, the firm's inventories rose more than 40% compared to a year ago. After the announcement Nike shares fell by more than 9% in extended trading. At the same time overall inventories rose by 44% to $9.7bn as the amount of goods in transit increased due to supply chain issues. The company reported that its revenues rose to $12.7bn for the same period, beating Wall Street forecasts.
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