Nike (NKE) Days Inventory Change and Inventory Pressure Analysis

Indicator	Value	YoY Change
Current Stock Price	$60.93	+1.55%
Days Inventory (August 2025)	105.04 days	↓ 8.6 days
Days Inventory (August 2024)	113.64 days	-
FY2025 Inventory	$7.489 billion	Flat
52-Week Stock Price Range	$52.28 - $82.44	-

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According to GuruFocus data, Nike’s days inventory decreased from

, a drop of approximately [1]. This trend indicates:

1. Improved Inventory Management Capability
   : A decrease in days inventory means Nike is managing its inventory more effectively, shortening the cycle from goods warehousing to sale
2. Industry Comparative Advantage
   : The 105.04-day turnover is better than the industry average of 126.01 days, and Nike ranks in the top 40% of the Manufacturing - Apparel and Accessories industry [1]

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Time Point	Inventory Amount (in millions of USD)	Trend
May 2022	$9,326	Peak Period
May 2023	$8,454	↓ 9.4%
May 2024	$7,519	↓ 11.1%
May 2025	$7,489	↓ 0.4%

:

• Nike’s inventory has decreased from the
  FY2023 peak of $8.454 billion to $7.489 billion in FY2025
  , a drop of
  11.4%
  [2][3]
• FY2025 inventory is roughly flat with FY2024 (only a slight drop of 0.4%), indicating that inventory clearance has entered a stable phase [3]

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Latest quarterly data shows seasonal fluctuations in inventory:

• August 31, 2025
  : $8.114 billion (seasonal stocking)
• May 31, 2025
  : $7.489 billion (end of fiscal year)
• February 28, 2025
  : $7.539 billion

Inter-quarterly fluctuations are within the normal range, and the August peak conforms to the autumn stocking pattern of the apparel industry.

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Assessment Dimension	Status	Explanation
Inventory Turnover Efficiency	✅ Improved	Days inventory decreased by 7.6%, outperforming industry average
Absolute Inventory Value	✅ Decreased	Down 11.4% from FY2023 peak
Inventory-to-Revenue Ratio	⚠️ Attention Needed	FY2025 revenue $46.3 billion, inventory-to-revenue ratio about 16.2% (FY2022: 18%)
Cash Flow Impact	⚠️ Under Pressure	FY2025 cash and cash equivalents dropped to $7.464 billion (YoY -24%) [3]

: Nike’s inventory pressure has significantly eased compared to the , but attention is still needed on:

1. Potential pressure from revenue decline (FY2025 revenue down 9.6% YoY) on inventory turnover [3]
2. Challenges in the Greater China market may affect overall inventory efficiency

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• Positive Factors
  : Significant results in inventory clearance, improved turnover efficiency
• Risk Factors
  : Revenue decline, stock price down 26% from peak, reduced cash flow
• Valuation Level
  : Current P/E ratio of 35.63x, slightly higher than historical average

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[1] GuruFocus - Nike (NKE) Days Inventory (https://www.gurufocus.com/term/days-inventory/NKE)

[2] Macrotrends - NIKE Inventory 2012-2025 (https://www.macrotrends.net/stocks/charts/NKE/nike/inventory)

[3] NIKE, Inc. Reports Fiscal 2025 Fourth Quarter and Full Year Results (https://investors.nike.com/investors/news-events-and-reports/investor-news/investor-news-details/2025/NIKE-Inc--Reports-Fiscal-2025-Fourth-Quarter-and-Full-Year-Results/default.aspx)

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Chart Description: The chart above shows Nike’s inventory change trend from FY2019 to FY2025, quarterly inventory trend, comparison of days inventory, and correlation analysis between revenue and inventory.