HomeIndustriesNike Shares Surge Following Inventory Cut

Nike Shares Surge Following Inventory Cut

Nike shares skyrocketed by 10% during premarket trading on Friday after the sports apparel company slashed its inventory ahead of the busy holiday shopping season. The company also raised its forecast for its second-quarter gross margin.

The sportswear giant has faced excessive inventory levels this year on the back of lower US demand. This issue largely stems from supply-chain hiccups as well as lower discretionary spending from consumers. Nike shares have plummeted by around 23% so far this year.

The company’s inventory levels stood at $8.7 billion during the first quarter, down from $9.66 billion a year earlier. Nike is adding a 100 basis point boost to its current-quarter gross margin forecast while keeping its annual outlook constant.

Drake MacFarlane, research analyst at M Science, has praised Nike’s ability to shrink its inventory, commenting that it “is very encouraging, considering the overall challenging promotional environment for the footwear industry.”

Warren Buffett to Step Down as Berkshire Hathaway CEO at the End of 2025

Warren Buffett is ready to step down as the CEO of multinational conglomerate Berkshire Hathaway. Buffet announced his decision while speaking at the company’s...

Microsoft Stock Soars on Better-Than-Expected Q3 Earnings

Microsoft reported better-than-expected third-quarter earnings on Wednesday, which caused the company's stock to soar by more than 8% in after-hours trading. Microsoft reported $3.46 in...

Gold Continues to Drop From Record Highs, Dollar Ends Its Slide

After reaching fresh record highs at the beginning of last week, gold has been in the midst of a continuous drop. Meanwhile, the U.S....