Let the good times roll

The bloated inventory which has plagued Nike’s share price for some time, might finally be coming under control.

• Shares in Nike shot up by more than 12% yesterday, on news that the company’s bloated inventory problem might be in the rear-view mirror. CEO, John Donahoe, said that actions they are taking in the marketplace, such as purchasing inventory more cautiously, are working.
• In September, the company had reported its inventory to have inflated by around 44%, reaching almost $10bn. Global economic conditions had also hampered its revenue, including inflation-conscious shoppers being less willing to part ways with their money.
• To top it all off, Nike also reported that its US sales had grown by 30% over the last quarter. Its China sales, which had fallen by 16% in the previous quarter, only fell by 3% in its most recent one – causing investment bank Credit Suisse to label the stock a “must-own”. Nice to hear some good news for change.