Dollar strengthening causes Nike to cut sales

Nike is suffering declining revenues due to increasing logistics costs and strengthening of the U.S. currency. The company is now selling its excess inventory, spurring the sale with discounts.

There was a decline in revenues at the end of the previous quarter, with the fall by 22% registered in comparison with the previous year’s results. The company’s revenue was about $1.47 billion last quarter, which is 1.5 billion euro. The growth in sales was registered in the first quarter of the year, as there was a 4% increase to the level of $12.7 billion.

The volume of sales might have continued to grow if the exchange rates remained stable, with a supposed growth by 10%. Still, income from abroad turns out to be lower in balance when being converted into the U.S. dollars due to the strength of the U.S. national currency.