Nike (NYSE: NKE) stock investors had a difficult 2022. The leading footwear and apparel giant stumbled through a demand slowdown in key markets like China and the U.S. that left it with too much inventory heading into the critical holiday shopping season. That oversupply is likely to pressure sales and earnings results into early 2023.

But what about the bigger picture for this growth stock? Let's look at Nike's prospects for improving investor returns over the next several years, starting with 2023.

Nike faces some major short-term challenges. The biggest red flag in its fiscal first-quarter report was a 44% spike in inventory levels, which jumped to nearly $10 billion. That surge looks even worse in the context of sales growth, which only landed at 10% after accounting for currency exchange rate shifts. Rival Lululemon Athletica achieved much better growth results, too, saying in its latest earnings update that sales rose 31%.

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Source Fool.com