Though imports are down, retailers are contending with an overflow of inventory. Nike, for example, said its North American inventory spiked by 65% in Q1, which is hitting gross margins, as multiple seasons of inventory landed at the same time. Nordstrom is another retailer discounting its products and clearing out inventory to accommodate new items.
For off-price retailers, the glut of inventory hasn’t exactly been good news. Initially, off-price retailers hoped that the influx of stock would have allowed them to buy more goods at lower prices and profit from subsequent price increases. But retailers are holding onto their inventory and marking it down themselves.
