Nike Blames i2 For Finish In Losers Bracket
Steve McVey - March 29, 2001

Event Summary

Nike's unexpected shortfall in third quarter earnings sent tremors through an already shaken Wall Street. Accustomed to the sort of excellence portrayed in its high-end ad campaigns, the defeated sports apparel maker attempted to blame the results on a new supply chain management system from i2 Technologies. Philip H. Knight, Chairman and CEO, said, 'We were anticipating a flat year-over-year third quarter largely because of weakness in our U.S. footwear revenues. During the quarter, we also experienced complications arising from the impact of implementing our new demand and supply planning systems and processes, which resulted in product shortages and excesses as well as late deliveries.' Nike further warned that problems with its global supply chain could last from six to nine months, hurting near-term profits as the company reduces prices to move excess inventory...