Nike set to overcome shipping woes - analysts
Nike shares dropped at the market open Friday after the company’s quarterly sales rose but missed Wall Street’s targets. But company executives and analysts said the supply chain issues that hurt those sales are mostly behind them.
Squeezing Nike: a confluence of a shortage of global containers, congestion at West Coast ports, and closures of brick-and-mortar stores due to European lockdowns. The supply chain woes that had hurt Nike have also widely impacted makers of cars, clothing and fitness equipment.
Nike CEO John Donahoe said the company now expects a “more consistent flow of inventory in the current quarter.”
The athletic apparel maker said its better managed inventory levels in North America will allow for more full-price sales. At least four analysts raised their price targets on the stock.
Still, Nike shares, which have more than doubled in the past 12 months, fell 5% in early trading Friday.
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