1718 ET - Nike's gross margins are being pressured by the company's significant efforts to clean up inventory and bring back newness to the consumer. But Nike needs to book higher costs to win back market share. The sneakers giant said its gross margins fell around 330 basis not only due tohigher discounts, but also as a result of higher products expenses as it seeks to deliver new products to tackle competition from both newer and well-established brands. As Jefferies said in December, the company now faces a significantly different competitive landscape compared to 2015, when it went through similar financial problems. At that time, Nike's only competitor was Adidas. Nowadays, it also has On, New Balance, Asics and Hoka, so these investments come out of a place of necessity. Nike trades 1% higher after hours. (sabela.ojea@wsj.com; @sabelaojeaguix)
(END) Dow Jones Newswires
March 20, 2025 17:18 ET (21:18 GMT)
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