NIKE is undertaking an inventory cleanup to clear older and slower-moving products, aiming to create a healthier marketplace and improve profitability over time. The company is tightening inventory purchases, reducing future sell-in, and adjusting wholesale order books in response to weak demand in Sportswear and Jordan Streetwear. In EMEA, NIKE sharply reduced promotional activity, resulting in a more than 50% decline in its off-price business and a 15-point improvement in full-price realization. NIKE anticipates fiscal 2027 revenues to decline in the low- to mid-single-digit range as it prioritizes healthier inventory levels, but expects supply-chain and cost actions taken in fiscal 2026 to contribute to margin expansion in fiscal 2027. Shares of NIKE have lost 35.4% in the past six months, and the company trades at a forward price-to-earnings ratio of 20.64X, compared with the industry's average of 18.38X.
Nike IncWeak demand in Sportswear and Jordan Streetwear drives inventory cleanup and revenue decline.
Lululemon Athletica Inc.