Nike registered its impressive fourth quarter profit going beyond the Wall Street’s expectations. As compared to the last year that was driven by long lead times from ongoing matters of their supply chain, Nike’s inventory spiked 23% in the three-month period.
Nike’s CFO Matthew Friend said, “We continue to closely monitor consumer behaviour, and we’re not seeing signs of pullback at this point in time, and so we continue to execute the strategy, and the plan we have which is working.”
The Sportswear MNC expects the first-quarter revenue to be constant to slightly upward rise than the past year, at same time, Nike persists to tackle the Covid disturbance in most regions of China. The company forecasts its annual revenue is expected to rise by low double-digits on a currency-neutral scenario.
The raised ocean freight costs, supply chain investments, increased product costs and higher levels of markdowns have been factored in its forecast, as said by Matthew Friend, Chief Financial Officer.
He said Nike is optimistic as it marches into the new fiscal. “The production has overtaken the pre-pandemic levels and its inventory is flowing again into our largest geographies.”