NKE · 10-Q · 2026Q3 · Full report

Inventory Levels and Composition

NIKE, Inc. · 2026-10-02 · Importance 61 · Surprise 32 · In source text

Inventories were $7.8 billion as of August 31, 2026, increasing 5% from May 31, 2026. The increase was primarily caused by shifts in product mix. Inventory growth reduced operating cash flow because the company is liquidating inventory through increased markdowns in NIKE Direct and higher sales returns and discounts with wholesale partners. Greater China also faced higher marketplace inventory and elevated promotional activity that negatively affected revenue and profitability.

Key facts

• The increase in Inventories for the three months ended August 31, 2026 was primarily due to shifts in product mix and contributed to a decrease in cash provided by operations through a net change in working capital that decreased cash provided by operations by $846 million. source
• Inventories as of August 31, 2026 were $7.8 billion, an increase of 5% compared to May 31, 2026, primarily due to shifts in product mix. source

Impact estimates