Nike skids after warning on squeeze from higher discounts, stronger dollar

Nike Inc cautioned on Thursday that gross margins would remain under pressure through the year as the world’s largest sportswear maker joined peers in warning of a blow from ramped up discounts and a rapidly strengthening dollar.

The company’s shares, already one of the worst performing Dow components for the year, fell 10 percent in extended trading.

“We’re going to see substantial markdowns this year through the holiday season. But going into the calendar year 2023, I believe inventories will be much lower after the holiday sell through and then the post holiday sales,” Morningstar analyst David Swartz said.

Overall inventories surged 44 percent to $9.7 billion at the end …

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