Nike Inc.

Thread Rating:
  • 0 Vote(s) - 0 Average
  • 1
  • 2
  • 3
  • 4
  • 5
#11
I wont buy it. I cannot imagine once tightened, the sensors become faulty and I will have hard time removing the shoes.
Reply
#12
Is Nike a good hedge in the current economic climate?

When the Yeezys first came out in 2016, I was one of the folks that lined up outside the store to acquire a pair. It was a terrific side income for me at the time because each pair could easily be “flipped” – resale for 2x–3x its retail price. Personally, I am a fan of sneakers since a great pair of shoes can be worn with any outfit you choose.

Nike and Adidas are the two footwear companies that come to mind. Since forever, these two renowned global firms from two separate continents – the United States and Europe have been hot favorites in the sectors of footwear and sportswear. Although these two firms appear to have identical business plans, there are significant variations between them.

Nike is today’s world’s most valuable apparel brand, with a market capitalization of $189 billion (as of 10th June 2022). Nike does have its fair share of criticisms – labor conditions, environmental impact, and animal welfare. With the recent tech sell-off, Nike dropped over 40%, could this be a potential opportunity to buy Nike stock?

Let’s take a look at what Nike has to offer. Let’s find out!
https://learntoinvests.com/nike-stock-analysis/
Reply
#13
John Hempton wrote about Hibbett and the business of selling sneakers in general.

Filing it here because it involves Nike and I am not sure if we should start a new thread on a thinly followed stock
https://johnhempton.substack.com/p/hibbe...stock-note

My summary here:
https://adragonhoard.blogspot.com/2024/0...s-and.html
Reply
#14
Hi EnSabahNur,

I have read this blog post 1-2 weeks ago and think it is still sufficiently relevant. Nike's change of distribution strategy is good learning and I re-produce it as below. Good learning for those vested in more popular stocks in this forum (eg. THG)

We also (randomly) met a Nike executive on the train from Amsterdam to Paris. His responsibility was small distributors in a largish part of Europe. His remit was clear – he was to kill any retailer who was not additive to Nike’s brand – and he was to shower with love a retailer who was additive to the brand. He could organize one-off drops of rare shoes for a special retailer. What he wanted was a retailer that approached important and style-setting niche markets – and his example would be say a skateboard shop that ran skateboard lessons for both elite skaters and 15-year-old girls.

Moderator
Reply
#15
That is a very good extract and the relationship to THG (and similar) kind of business.

I am not familiar enough with the sneakers business but what Nike was able to do to retailers is a little chilling. They can literally change the economic fortunes of hundreds of businesses. A very good lesson for business analysis.

Btw, is THG in the same position as Hibbett or Footlocker or something else in this? I would guess that it is a Hibbett because in the THG thread, somebody mentioned their willingness to invest in shop spaces to drive sales.
Curious to hear any thoughts, in case you have some familiarity with this kind of businesses.
thanks.
Reply


Forum Jump:


Users browsing this thread: 1 Guest(s)