Did Nike Just Issue a Warning for Other Retail Stocks?
Not long ago, it seemed like products were constantly out of stock. From the grocery store to Amazon, ever-present supply chain issues affected inventory levels for many companies. However, in the wake of those challenges, some companies have overcorrected, leaving them with massive stockpiles.
This is its own problem as stale merchandise can become a drag on a company's balance sheet and profitability. Unfortunately, this scenario is exactly where Nike (NYSE: NKE) has found itself, and where many other retailers could soon find themselves too.
Nike's report for the fiscal 2023 first-quarter (ended Aug. 31) shed light on its situation. Inventory rose 44% year over year to $9.6 billion, far above the baseline Nike has established over the last five years.
Source Fool.com
