Nike falls amid declining gross margins and stronger dollar

Nike Inc said gross margins will be under pressure throughout the year. One of the largest manufacturers of sportswear and footwear warned its customers about this, referring to the expectation of a possible blow due to increased markdowns and a rapid strengthening of the dollar, joining its competitors in this.

According to Morningstar analyst David Schwartz, significant discounts are expected this year's holiday season, but reserves should be expected to decline by the new calendar year's eve after the holiday and further post-holiday sales.

Analysts have said that there has been a decrease in demand for Nike brands, including Jordan and Converse, and the main reason for that is the loss of enthusiasm in the ranks of sports-shoe fans for discretionary items amid declining living standards.