Nike is discounting DTC prices to move inventory
June 30, 2023
Nike is finding it more difficult to clear its inventory in light of current economic challenges and is resorting to discounting to boost sales. The athletic wear brand’s CFO Matt Friend, said Nike plans to continue promoting its direct-to-consumer business. Nike’s business with wholesale accounts fell to 56 percent in May, down from 70 percent four years ago.
A Nike discount is easier than ever, thanks in part to the inflation that many retailers have used to increase overall prices of their products. As a result, Nike stock fell -2.76% and is having trouble clearing its inventory.
In order to makeup for these pitfalls, Nike is betting more on its DTC business model and offering new steeper discounts to consumers.
And with less wholesale accounts, it is critical for Nike to reach its consumers directly if retailers are carrying competing brands and products.
Recent News
Amazon Beauty’s Summer Beauty Haul Returns
As the summer approaches, Amazon Beauty is rolling out its much-anticipated Summer Beauty Haul.
Popular Sriracha Sauce to Cut Production This Summer
The popular condiment may be tougher to find than ever.
Cyberattack Disrupts Ascension Healthcare, Ambulances Diverted
A significant cyberattack has struck the core of the U.S. healthcare system, sending shockwaves through Ascension, a nonprofit network encompassing 140 hospitals across 19 states.
AMC Announces First Quarter Earnings
AMC Entertainment Holdings Inc. recently unveiled its first-quarter report, showcasing positive results. Revenues surpassed analyst expectations by 4%, totaling $951 million.