What: Nike’s shares went down due to weaker margins, a build-up of inventory, and fallen revenues in China.

Why it is important:  It became clear to Nike that the conditions in North America are shifting again.

Nike’s inventories were valued at 9.7 billion USD at the end of the quarter, up 44% from a year earlier. However, revenues in Greater China fell by 13% to 1.7 billion USD as the country continued to struggle with COVID-19 restrictions. Gross margins declined which raised concerns about just how promotional the market could become as the fashion industry and consumers muddle through a weakening economy.

Nike shares decreased by 9.2%, resulting in investors’ skittishness thanks to a dicey market complicated by supply chain troubles, inflation and the threat of recession.

Nike shares are impacted by economic turmoil