Nike's Management Is Optimistic, but Should You Buy the Stock?
Nike (NYSE: NKE) reported fourth-quarter and fiscal 2022 earnings after the market closed on Monday, June 27. The report revealed a surge in inventory levels just as consumer spending is slowing down.
The rise in products on hand could prove troubling if Nike needs to discount them to move them off the shelves. However, the company expects sales momentum to accelerate in the upcoming year. If the growth materializes, it could be great news for Nike investors.
In Nike's fiscal fourth quarter, which ended on May 31, revenue fell 1% from the same time the prior year. The most considerable headwinds came from China, where government-mandated lockdowns hurt consumer spending. Nike's overall sales in China in Q4 were down 19% year over year.
Source Fool.com
