Over saturation actually helps Nike a TON.
Let's say if they put out 100 units of a wack retro.
They sell 60 units in store at full MSRP and Have 40 units sit - to some this is a "flop" release.
Nike is genius in the fact that they have "Nike outlets" to sell that 40% that didn't sell of that particular unit.
If retail was $220 - and outlet price $160, those 40 discounted units would sell out ASAP.
Nike wins.
No matter what, they win.
Unfortunately other brands can't excell in the outlet Strategy.
Adidas outlets tend to be awful.
Adidas is not looking to win this year, they are looking for big strides years down the road.
Invest big now = big return later.