The retail sector is reacting to a disappointing read on margins from Nike (NKE) due to the athletic apparel giant's efforts to clear excess inventory.
During its FQ1, Nike saw its inventory soar 44% to $9.7B as it took holiday supplies early and bounced back from some of the pandemic-related supply chain issues of the last two years.
"We’ve decided to take that inventory and more aggressively liquidate it so that we can put the newest and best inventory in front of the consumer in the right locations," updated Nike execs on the conference call.
Investors have their eyes on other athletic apparel stocks following the Nike report. Under Armour (UAA) fell 3.76% in premarket action on Friday, Lululemon Athletica (LULU) dropped 2.98%, Dick's Sporting Goods (NYSE:DKS) declined 3.06%, and Foot Locker (FL) was off 3.36%.