They are not. Also from a stock buy perspective, they look pretty ripe for being a good pick. The approx 15% drop in the last 5 days, nearing a 5 yr low (54.39)...there's some solid potential for a good swing and nice return here.
Have heard this one before, Bud. You keep throwing your money into that sinkhole, though.
When adjusted for inflation, Nike is no longer a revenue growth company. They have been flat since 2020, in stark contrast to most major US-based companies over the last half-decade. And where there was an area for potential growth, greater China, they have completely misread the situation and are down down 17% just this year alone, and it's going to get much worse, believe me.
For the poster above who commented on the product's quality, there is some truth to it, and it very well may be the company's true Achilles heel. The product is no longer considered of high quality by affluent consumers. One poster commented that the outlet, bargain Nike stores are packed. I can assure you, this is not a good sign. In fact, quite the opposite for a so-called premium and captivating apparel brand.
Spikes and road racing shoes are great. I'll give you that. Those don't pay the bills, however.
Happy investing.
I don’t think Nike positions itself as just premium brand. Maybe they will try to go that route, but not currently. Yes, they do make premium products which are excellent. I really don’t understand the narrative of their quality going down though. Never had any issues with their products, and I buy tons of Nikes.
I don’t see them position themselves as premium as they do make tons of products that’s not premium. Those are products that you find at outlet stores, Nordstrom Rack, Famous Footwear, DSW. They make shoes and apparels that are specific to be sold at those stores. I mean, recently I’ve seen ads about Famous Footwear carrying Jordans. Those aren’t the nice Jordan shoes. And they make plenty of those types of bargain shoes. Like running shoes like Nike Revolution or Downshifter, they will be featured at outlet stores or at Nordstrom Rack, but won’t even be sold at Nike Stores at nice malls or standalone Nike stores.
So, again, Nike does make plenty of products that are non-premium targeting towards people wanting Nike products but not their premium products. I mean, many many brands do this. That’s why Nordstrom Rack exists where stuff you buy there, most are not sold at actual Nordstrom, but are brand name products that’s specifically sold at non premium places. However, you will occasionally find actual premium products at Nordstrom Rack or at like Nike outlet stores which may have been a return or overstock items. So, at times, you will find like a random Streakfly 2 selling at Nike outlet stores for like $75 but that’s not that common.
Looking at their segment revenue, they are are 2/3 a sneaker company the other third a clothes company.
From the sneaker standpoint, seems like the other shoe companies have caught up to vapors and Alphas, which don’t dominate the same way they originally did. Hardly anybody I know still uses Nike trainers. Can’t speak about basketball sneakers, which seems to be their other big revenue stream. Are Air Jordans is still a big deal?
From a clothes standpoint they face a lot of competition from Amazon sellers , which provide a lot of lower priced options.
I just don’t see Nike ever regaining its former position.
This post was edited 23 seconds after it was posted.
They are not. Also from a stock buy perspective, they look pretty ripe for being a good pick. The approx 15% drop in the last 5 days, nearing a 5 yr low (54.39)...there's some solid potential for a good swing and nice return here.
Have heard this one before, Bud. You keep throwing your money into that sinkhole, though.
When adjusted for inflation, Nike is no longer a revenue growth company. They have been flat since 2020, in stark contrast to most major US-based companies over the last half-decade. And where there was an area for potential growth, greater China, they have completely misread the situation and are down down 17% just this year alone, and it's going to get much worse, believe me.
For the poster above who commented on the product's quality, there is some truth to it, and it very well may be the company's true Achilles heel. The product is no longer considered of high quality by affluent consumers. One poster commented that the outlet, bargain Nike stores are packed. I can assure you, this is not a good sign. In fact, quite the opposite for a so-called premium and captivating apparel brand.
Spikes and road racing shoes are great. I'll give you that. Those don't pay the bills, however.
Happy investing.
Yes, the investor "world" has been hearing this in particular for the last 2-3 years and the pattern between quarterly financials has been small, unimpressive growth that then is erased in a matter of 30min when either Donahoe or Hill have opened their mouths to give their spiel. It's one step forward and then 2 large steps backwards every single earnings for the last 16 or so of them.
The biggest problem they had and still have, is that their brand "fatigue" which every brand experiences on some kind of cycle, has occurred during a massive cooling off/down-turn for the sector as whole. Smaller brands like Hoka and ON were able to capitalize and earn adoption+trust during the downturn, but even now that is starting to dissolve (especially HOKA who somehow managed to give up their products unique value proposition to every other brand out there without moving it forwards themselves).
I've never subscribed to the "product is of lower quality" narrative. It's no worse than any other brand - it's literally made in all the same factories just on different production lines. And anyway even if it was, this isn't the reason the overwhelming majority of people buy product from a brand to begin with.
Nike was just complacent, arrogant and failed to recognize their place in the real-time state of the market. The problem they really have/had, really starts with uncle Phil because he needed to pull the plug on Donahoe about 12 months before he did, but didn't want to out of his own ego, saving his own face. What happened was that in this 12 months or so, the brand perception basically cratered in this stage of fatigue and pulling yourself out of that can take considerable time - especially when, again, the whole athletic goods sector is still in a state of depression.
The one thing they have going for them is they still make money and can still pay a dividend. If that disappeared the stock could legitimately halve from where it is even today. I think it's the only reason a lot of investors are still holding on.
I think they need more than just the "old Nike formula" here. Still way too many dinosaurs and weathered old PNW shoe folk draining a ton of salary out there - even despite all the recent restructuring. Hill has also been unimpressive tbh. I get that he needed to endorse the Breaking 4 thing with Kipyegon (which btw turned into a 60+ million dollar waste of money because they got NOTHING out of it at all except a month of publicity), but ultimately it sort of exposed his lack of knowledge in their most important sport - running. He then followed it up with these horrendous "future of sport innovations" - the "neuroscience" shoe and the "mechanical ankle" shoe for old people and 12 min milers, which I think a true product guy like Mark Parker would have rather stabbed himself in the eye with a fork rather than ever publicly endorse.
It just does seem like a sinkhole right now. What's the best case scenario - $80 in 18 months time? Good lord, forget about it.
ON most likely better investment since it's still a high growth business, but it's not overtaking Nike or Adidas anytime soon.
Still unless you think Nike will go to zero like a Sears/Kmart, it's going to sit there grinding out it's $1.64 annual dividend for the forseeable future.
I'm not sure what you want us to do with all your doom and gloom???
Have heard this one before, Bud. You keep throwing your money into that sinkhole, though.
When adjusted for inflation, Nike is no longer a revenue growth company. They have been flat since 2020, in stark contrast to most major US-based companies over the last half-decade. And where there was an area for potential growth, greater China, they have completely misread the situation and are down down 17% just this year alone, and it's going to get much worse, believe me.
For the poster above who commented on the product's quality, there is some truth to it, and it very well may be the company's true Achilles heel. The product is no longer considered of high quality by affluent consumers. One poster commented that the outlet, bargain Nike stores are packed. I can assure you, this is not a good sign. In fact, quite the opposite for a so-called premium and captivating apparel brand.
Spikes and road racing shoes are great. I'll give you that. Those don't pay the bills, however.
Happy investing.
I don’t think Nike positions itself as just premium brand. Maybe they will try to go that route, but not currently. Yes, they do make premium products which are excellent. I really don’t understand the narrative of their quality going down though. Never had any issues with their products, and I buy tons of Nikes.
I don’t see them position themselves as premium as they do make tons of products that’s not premium. Those are products that you find at outlet stores, Nordstrom Rack, Famous Footwear, DSW. They make shoes and apparels that are specific to be sold at those stores. I mean, recently I’ve seen ads about Famous Footwear carrying Jordans. Those aren’t the nice Jordan shoes. And they make plenty of those types of bargain shoes. Like running shoes like Nike Revolution or Downshifter, they will be featured at outlet stores or at Nordstrom Rack, but won’t even be sold at Nike Stores at nice malls or standalone Nike stores.
So, again, Nike does make plenty of products that are non-premium targeting towards people wanting Nike products but not their premium products. I mean, many many brands do this. That’s why Nordstrom Rack exists where stuff you buy there, most are not sold at actual Nordstrom, but are brand name products that’s specifically sold at non premium places. However, you will occasionally find actual premium products at Nordstrom Rack or at like Nike outlet stores which may have been a return or overstock items. So, at times, you will find like a random Streakfly 2 selling at Nike outlet stores for like $75 but that’s not that common.
This Is Nonsense, My Favorite Runner Aaliyah Butler Signed a Contract with NIKE a Few Hours Ago.
ON most likely better investment since it's still a high growth business, but it's not overtaking Nike or Adidas anytime soon.
Still unless you think Nike will go to zero like a Sears/Kmart, it's going to sit there grinding out it's $1.64 annual dividend for the forseeable future.
I'm not sure what you want us to do with all your doom and gloom???
Revenue has nothing to do with it. Nike's revenue will always dwarf everyone else and will do forever - it would take something incredibly catastrophic for that to change.
But this isn't about revenue it's about share price and the reason (I assume?) most people invest in brands through stock is to make money themselves. Nike is now 4 years in to considerable share price losses. I'm not sure if a $1.64 annual dividend should make anyone feel that good. There are growth stock mutual funds out there that have returned 13-14% over the last 5 years and have annual dividend yields of $11-12 a share (TRBCX is one as a simple example) - and that's not even a great performing one. Nike is down 60% over the last 5 years. SIXTY.
What to do with this doom and gloom? (and yes time to face up, it's doom and gloom because this is horrible stock performance) - I don't know. It's kind of at a point that if you were in on Nike over $100 you have no choice but to wait it out but at the same time, people have been holding on to this for 2-3 years now waiting for the big "recovery". Meanwhile many other low risk stocks have been just trundling along and blowing Nike out of the water. What do you want me to tell you?
This post was edited 6 minutes after it was posted.
Today’s runners don’t care too much about brand loyalty and trying to look sponsored. I see it all the time - they train in Brooks Ghost Max and ASICS Novablast, then buy a some AlphaFly for race day. They buy a Tracksmith singlet, pair that with some Gymshark half tights, and warmup in that commemorative Adidas jacket they bought at Boston last year.
Back in the day, all of your shoes and apparel were single branded because it looked pro! Influencers changed that with ringing endorsements and discount codes. Old guard firms like Nike haven’t figured that out yet.
ON most likely better investment since it's still a high growth business, but it's not overtaking Nike or Adidas anytime soon.
Still unless you think Nike will go to zero like a Sears/Kmart, it's going to sit there grinding out it's $1.64 annual dividend for the forseeable future.
I'm not sure what you want us to do with all your doom and gloom???
Revenue has nothing to do with it. Nike's revenue will always dwarf everyone else and will do forever - it would take something incredibly catastrophic for that to change.
But this isn't about revenue it's about share price and the reason (I assume?) most people invest in brands through stock is to make money themselves. Nike is now 4 years in to considerable share price losses. I'm not sure if a $1.64 annual dividend should make anyone feel that good. There are growth stock mutual funds out there that have returned 13-14% over the last 5 years and have annual dividend yields of $11-12 a share (TRBCX is one as a simple example) - and that's not even a great performing one. Nike is down 60% over the last 5 years. SIXTY.
What to do with this doom and gloom? (and yes time to face up, it's doom and gloom because this is horrible stock performance) - I don't know. It's kind of at a point that if you were in on Nike over $100 you have no choice but to wait it out but at the same time, people have been holding on to this for 2-3 years now waiting for the big "recovery". Meanwhile many other low risk stocks have been just trundling along and blowing Nike out of the water. What do you want me to tell you?
I don't own Nike stock and my guess is very few LRC posters do either.
It just sounds very dramatic, like you want us all to take some dramatic action. Meanwhile Nike (like Starbucks) is just a behemoth of a company going through a tough patch. The stock price has no effect on my training run, my shoe selection, or what pros I follow.
Maybe if it sinks to $32 that might be a good entry point for a value investor. If the whole market finally has an overdue pullback, this would not be out of the question.
No worries. It's Black factories in Asia now. Its where the automation is 100% and they turn off the indoor lights and let sew shoes, fashion apparel, operating for days. Black factories are the thing now.
I think part of the problem is that a lot of Nike clothes just look dumb as hell at the moment.
Stupid whacky designs that nobody actually wants to wear. I just went on the sneakers app and some some lenticular snakeskin print jacket for $200+. Stupid.
In a year or two they will rotate to a new design team and find themselves popular again, but at the moment, it's not working.
I think part of the problem is that a lot of Nike clothes just look dumb as hell at the moment.
Stupid whacky designs that nobody actually wants to wear. I just went on the sneakers app and some some lenticular snakeskin print jacket for $200+. Stupid.
In a year or two they will rotate to a new design team and find themselves popular again, but at the moment, it's not working.
You mean the "double swoosh" look was working?
What I love is how every few years Nike does this on their apparel... Year 1: What most people to consider to a be a "normal" size logo on the left chest (as you wear it) Sales are fine, but of course execs want more, so....
Year 3: Nike: "THE LOGO NEEDS TO BE LARGER!! The "Swoosh" is our brand!!" Consumers: "Jesus, that is ugly and way too big". Sales go down but it takes 2 years for Nike to realize this
Year 5: "Lets shrink the logo down to be a lot smaller and less noticeable" Consumers love it. Nike execs hate it because "The "Swoosh" is our brand and we go back to the "a more noticeable swoosh means more money!
Jim Cramer Shares How NIKE (NKE)’s Stock Could Go to a 100.
NIKE, Inc. (NYSE:NKE)’s turnaround has been a frequent feature of Cramer’s discussion in 2025. While the shares 20% year-to-date and were down by 11% ahead of last week’s fall, the CNBC TV host has continued to express optimism about the firm’s turnaround under CEO Elliott Hill. After NIKE,
Nike and all the other western brands have a major problem. When I can buy a training shoe with a TPU midsole and excellent quality upper for $50 from Qiaodan, Li-Ning, Anta, Do-Win, Dynafish and new brands on the way like Mills, 910 etc…. The latest Dynafish super shoe can be found for around $80 and their super trainer for slightly more. They review better than most of the major players. We have been over paying for product for years.
Pegs are not even top 3 in the daily trainer category. The Evo SL, the Rebel V5, the Novablast 5 blows it out the water. The Vomero is so ugly, nothing compared to the Superblast or the Megablast.